Please answer the questions correctly, its all relatedso its not mutilpe questions. Thumbs up for the correct answeronly!
1. Pizza purchased 100% of the net assets of Submarine Companyin an “Asset Acquisition.” Pizza paid $5 million for SubmarineCompany. Submarine Company had identifiable net assets of $3.5million.
The difference of $1.5 million will be accounting for as:
A. Ordinary Gain
B. Bargain Purchase
C. Goodwill
D. Other Assets
2. The following is the list of assets and liabilities ofSubmarine Company
3 If Pizza Co. had insteadpurchased Submarine through a “Stock Acquisition” (purchased 100%of Submarine Stock) the journal entry to record the stockacquisition would be as follows:
A.True
B. False
4. (Stock Acquisition) The current method of accounting for astock acquisition is more aligned with Parent Company Conceptversus the Economic Unit Concept.
A. True
B. False
5. (Stock Acquisition) Noncontrolling interest represents theequity position of the subsidiary shareholders who continue to holdstock (did not sell their ownership) in the subsidiary.
A. True
B. False
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