Asked by

Rachael McCoy
on Nov 02, 2024

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Where the acquirer purchases assets and assumes liabilities of another entity it does not need to consider measurement of:

A) goodwill.
B) consideration transferred.
C) fair values of identifiable net assets.
D) carrying amounts of identifiable net assets.

Assumes Liabilities

The process by which one party takes on the legal responsibility for the debts or obligations of another party.

Fair Values

The market value of selling an asset or the outlay for a liability transfer in a negotiated agreement among trading participants at the time of estimation.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of the identifiable net assets of the acquired business.

  • Determine and implement the correct principles for identifying and measuring assets, liabilities, and potential liabilities during a business merger.
  • Acquire knowledge on the principle and accounting approach for goodwill within business mergers.
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Mariah HintzNov 05, 2024
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