Business, 31.03.2020 02:38 joseroblesrivera123
Easton Company and Lofton Company were combined in a purchase transaction. Easton was able to acquire Lofton at a bargain price. The sum of the market or appraised values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Easton. After revaluing noncurrent assets to zero, there was still some "negative goodwill." Proper accounting treatment by Easton is to report the amount as a. an extraordinary gain. b. part of current income in the year of combination. c. a deferred credit and amortize it. d. paid-in capital.
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Easton Company and Lofton Company were combined in a purchase transaction. Easton was able to acquir...
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