In a purchase business combination in which common stock was acquired, the target company's assets and liabilities are revalued to their current values for consolidated reporting purposes.

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In a purchase business combination, the assets and liabilities of the target company are indeed revalued to their fair market values on the acquisition date for the purposes of consolidated financial reporting. This process ensures that the financial statements reflect the current value of these assets and liabilities at the time of the acquisition.

In a Purchase Business Combination in Which Common Stock Was