Howard University accounting discussion
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Discussion 1.1 Explain the Advantages of Business Combinations
Describe the economic advantages of business combinations.
300 350 WORDS. Cite any relevant sources. APA format.
Assignment 1.1 Acquisition of Company B by Company A (stock or asset acquisition)
Company A is about to acquire 100% of company B. Company B has identifiable net
assets with book value of $300,000 and $500,000 respectively. As payment Company A
will issue common stock with a fair value of $75,000.
How should the transaction be recorded if the acquisition is?
a) An acquisition of net assets?
b) An acquisition of Company Bàcommon stock and Company B remains a separate
legal entity.
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