In allocating the cost of a business combination,what is not required to exist at the date of acquisition?
A) Assets
B) Liabilities
C) Goodwill
D) Contingent liabilities

Question

Quizplus · Accepted Answer

Goodwill is not required to exist at the date of acquisition; it is recognized only if the purchase price of the acquired company exceeds the fair value of its net identifiable assets.

In Allocating the Cost of a Business Combination,what Is Not