When the value implied by the purchase price of a subsidiary is in excess of the fair value of identifiable net assets, the workpaper entry to allocate the difference between implied and book value includes a:
A) debit to Difference Between Implied and Book Value.
B) credit to Excess of Implied over Fair Value.
C) credit to Difference Between Implied and Book Value.
D) debit to Difference Between Implied and Book Value and credit to Excess of Implied over Fair Value.

Question

Quizplus · Accepted Answer

The Answer of When the value implied by the purchase price of a subsidiary is in excess of the fair value of identifiable net assets, the workpaper entry to allocate the difference between implied and book value includes a:
A) debit to Difference Between Implied and Book Value.
B) credit to Excess of Implied over Fair Value.
C) credit to Difference Between Implied and Book Value.
D) debit to Difference Between Implied and Book Value and credit to Excess of Implied over Fair Value.

When the Value Implied by the Purchase Price of a Subsidiary