merger is the dissolution of one or more companies and the transfer of its capital or their liabilities to an existing company. Select one: a. Transformation O b. Take over
Q: What is a statutory merger?a. A merger approved by the Securities and Exchange Commission.b. An…
A: The correct answer is Option (d).
Q: consolidation occurs when one corporation takes over all the operations of another business entity,…
A: The answer for the True or false question and relevant explanation are presented hereunder : The…
Q: In the business combination of Polka and Spot Select one: a. all of the costs except those of…
A: Common acquisition-related costs addressed in Business Combinations are: Legal Accounting and due…
Q: Demonstrate the consolidation process when a corporate ownership structure is characterized by a…
A: A connecting affiliation exists when 2 or more entities within a particular business combination own…
Q: It is the bringing together of separate entities or businesses into one reporting entity. * O Merger…
A: Merger means 2 company's will together form into one company new Acquisition means one company will…
Q: Entity A and Entity B combined their businesses. The acquirer in the business combination is not…
A: When the acquirer in the business combination is not clearly identifiable then the following…
Q: Assuming the existence of two companies, A and B, which of the following is not a business…
A: Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both…
Q: Choose the correct. What is a statutory merger?a. A merger approved by the Securities and Exchange…
A: Merger: It is a process or an agreement where two or more firms combine together to form one new…
Q: Restructuring provisions: a. Are generally not recognized as part of business combination unless…
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: A parent-subsidiary relationship is formed when: O A. The acquirer firm is dissolved. B. The…
A: The acquisition is considered as the activity which is performed by a firm that has purchased…
Q: Restructuring provisions
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: In a business combination, the acquiree is the business that: Select one: a. Finances the business…
A: Acquisition: The acquisition is the term that is used when one company acquires or purchases shares…
Q: In a merger of consolidation, or transfer to a controlled corporation, loss is deductible. Group of…
A: Kinds of tax-free exchange include: Transfer to a controlled corporation Merger or consolidation
Q: An entity shall determine whether a transaction or other event is a business com applying the…
A: An entity shall determine whether a transaction or other event is a business combination by…
Q: Demonstrate the consolidation process when a corporate ownership structure is characterized by…
A: Definition: A connecting affiliation exists when 2 or more entities within a particular business…
Q: What are the sources of synergy after acquisitions and mergers?
A: Merger and acquisitions is two companies working together for the purpose of achievement of…
Q: group" for consolidation purposes
A: First option is wrong because a group for consolidated purposes does not mean the entity that is…
Q: Statement I: A consolidation occurs when the entity that issues securities (the identified as the…
A: Business combination might be structured in many ways for the purpose of taxation as well as legal.
Q: A merger occurs when one corporation takes over all the operations of another business entity, and…
A: Mergers and acquisitions are done to consolidate the companies by taking over a certain percentage…
Q: he entity that obtains control over another business in a business combination called the
A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…
Q: (b) Discuss the effects and procedure for mergers and acquisition.
A: (b) Mergers and acquisitions is used to describe the accumulation of companies or their assets…
Q: How much is the net increase in additional paid-in capital to be recorded in the books of the…
A: On Dec 31,2011 XY Corporation was merged into AB Corporation. AB issued 86,000 shares of the par…
Q: onsidering a merger, state
A: Introduction : In simple words, when two companies unites their operations to become one single…
Q: Define each of the following terms:b. Horizontal merger; vertical merger; congeneric merger;…
A: b. Horizontal merger When a merger occurs amongst the entities that are operating within the same…
Q: When one company buys the assets and liabilities of another company, this is known as which of the…
A: Corporation: It can be defined as a legal entity that has a separate existence from its owners.
Q: A business combination may be legally structured as a merger, a consolidation, or an acquisition.…
A: An agreement that involves combination of two entities leading to the formation of a new entity in…
Q: Define each of the following terms:d. Operating merger; financial merger
A: Merger refers to the process whereby two or more companies come together to form a single entity. In…
Q: following situations best describes a business combination to be accounted for as a statutory merge
A:
Q: Which of the following is NOT true with regard to the statutory consolidation form of business…
A: The statutory consolidated form of business combination has 1. The combining entities cease to 3xist…
Q: Explain the situations under which a firm is dissolved.
A: Partnership: Partnership is defined as an association of two or more persons to carry business for…
Q: The combination of resources through a partnership arrangement rather than through a legal…
A: Joint venture is an enterprise in which resources of two or more companies are combined to…
Q: Statement I: A consolidation occurs when the entity that issues securities (the legal acquirer) is…
A: Consolidation In the consolidation parent company acquired the control over one or more subsidiary…
Q: takeover is the acquisition of control over a corporation through a purchase of sub O True O False
A: Takeover means when one company purchase another company's majority or substantially all of its…
Q: A horizontal merger takes place between companies operating: a. At different stages of the…
A: Solution: When two or more entities start working by coming together, it is called a merger. There…
Q: Assuming the existence of two companies, A and B, which of the following is not a business…
A: As per IFRS/PFRS 3 Business combination A business combination is said to be exist only when their…
Q: Which of the following statements is true? Multiple Choice The pooling of interests for…
A: Solution: As per IFRS 3, "Acquisition method should be used for new business combinations"
Q: A conglomerate merger takes place between firms in completely different industries.; True or False
A: Merger- A merger is an agreement between two or more existing companies to join into a single new…
Q: Explain how purchase accounting is implementedin a merger. Does the accounting profession nowrequire…
A: Purchase accounting can be defined as the practice of revising the assets and liabilities of the…
Q: Choose the correct. In a father-son-grandson business combination, which of the following is true?a.…
A: Father-son-grandson relationship: The father-son-grandson relationship refers to the business…
Q: This distinguishes a business combination from other types of investment transactions. Obtaining of…
A: Business combination is defined as the transaction under which the acquirer gains the control over…
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- Acquisition accounting requires an acquirer and an acquirer to be identified for every business combination. Where a new entity (H) is created and two pre-existing entities, S and A, which of these entities will be designated as the acquirer? H S A S or AAcquisition accounting requires an acquirer and an acquirer to be identified for every business combination. Where a new entity (H) is created and two pre-existing entities, S and A, which of these entities will be designated as the acquirer? a. H b. S or A c. S d. A33. A purchaser of a business will generally prefer which of the following? An asset purchase to receive new basis for depreciation A stock purchase because the seller will receive capital gains Utilizing a §338(g) election If the selling entity is an S Corporation making a joint §338(h)(10) election All of the above A,C,&D What form is required to report the allocation of the purchase price? ____________
- Identify the option that you would consider to be among the disadvantages of forming a limited company.a) Legal control and stringent requirements that have to be compliedb) The need to entrust control and decisions to a fewc) Restrictions on return of capital if in excess of company’s requirementsd) The ease with which the share of ownership could be disposed of Select one: A. b, c & d B. c & d C. a, b & c D. a, c & dExplain how purchase accounting is implementedin a merger. Does the accounting profession nowrequire this method? How is any premium that theacquiring firm paid over the acquired firm’s bookvalue treated subsequent to a merger?i. Compare and contrast forfeiture of shares and surrender ofshares. Explain in each case five circumstances under whichshares may be forfeited or surrendered. ii. Differentiate between the following kinds of companies: Statutory and Registered companies
- Select the best answer. Which types of entities should owners have buy-sell agreements among the owners to provide for an orderly transfer of an owner's interest in the case of death or upon the occurrence of a certain event such as divorce retirement, or disability? O A. A closely held S corporation B. A general corporation O C. A large C corporation estion Q 9 OD. A sole proprietorship Submit Answers 100% CompleteIn a business combination, the acquiree is the business that: Select one: a. Finances the business combination. b. Pays the acquisition consideration. c. The acquirer obtains control of in a business combination. d. Obtains control of the acquiree.Statement I: For each business combination, an acquiree is always identified.Statement II: The acquisition date is the date where the acquiree obtains control over the acquirer. a. True, False b. True, True c. False, True d. False, False
- NEED ASAP THANKS I WILL RATE YOU S1: An acquirer may be able to obtain control over an entity without transferring any consideration.S2 In preparing working paper eliminating entries on the date of acquisition, the stockholders’ equity account of the acquiree must be eliminated to the extent of the ownership interest of the acquirer only. A. S:1 False; S2: True B. S1: True; S2: True C. S1: False; S2: False D. S1: True; S2: FalseExamine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st January 2023 on the assumption: A. Condition u/s 2(1B) and u/s 72A does not satisfy B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy C. Conditions u/s 2(1B) and u/s 72A are satisfied Other Information of X Ltd.: (i) Business Profits (before adjusting losses and expenses) *60,000 (ii) Expenses on merger *2,00,000 (iii) VRS Compensation (Paid during 2020-21) *4,00,000 (iv) Sale consideration of non-depreciable capital assets *20,00,00 (v) Indexed cost of acquisition of non-depreciable capital assets *12,00,000 (vi) Sale consideration of depreciable assets *10,00,000 (vii) WDV of depreciable assets *7,00,000 (viii) Non-speculation business loss relating to 1994-95 *3,00,000 (ix) Unabsorbed depreciation relating to 2020-21 1,50,000 (x) Long term Capital loss relating to 2021-22 *2,00,000 Business profits of Y Ltd. (before adjusting losses and expenses) ₹30,00,000 and long term capital…Assuming the existence of two companies, A and B, which of the following is not a business combination? a. Company A acquires all assets and liabilities of Company B. Company B continues as a company, holding shares of Company A. b. Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A and Company B liquidate. c. Company A acquires all assets and liabilities of Company B, and Company B liquidates. d. Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company B continues to operate as a company.
