According to ASC 810-10,liabilities assumed in an acquisition will be valued at the ________.
A)fair value
B)historical book value
C)current replacement cost
D)present value using market interest rates

Question

Quizplus · Accepted Answer

According to ASC 810-10, liabilities assumed in an acquisition should be valued at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This approach provides more relevant information about the fair value of the acquired entity's net assets and the cost of the acquisition.

According to ASC 810-10,liabilities Assumed in an Acquisition Will Be