Which of the following costs of a business combination can be deducted from the value assigned to paid-in capital in excess of par?
A)Direct and indirect acquisition costs.
B)Direct acquisition costs.
C)Direct acquisition costs and stock issue costs if stock is issued as consideration.
D)Stock issue costs if stock is issued as consideration.

Question

Which of the following costs of a business combination can be deducted from the value assigned to paid-in capital in excess of par?
A)​Direct and indirect acquisition costs.
B)​Direct acquisition costs.
C)​Direct acquisition costs and stock issue costs if stock is issued as consideration.
D)​Stock issue costs if stock is issued as consideration.

Quizplus · Accepted Answer

Stock issue costs if stock is issued as consideration can be deducted from the value assigned to paid-in capital in excess of par. Direct and indirect acquisition costs and direct acquisition costs cannot be deducted from the value assigned to paid-in capital in excess of par.

Which of the Following Costs of a Business Combination Can