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Nostrana [21]
3 years ago
8

In a business combination in which an acquiring company purchases 100% of the outstanding common stock of another company, if th

e fair value of the net identifiable assets acquired exceeds the fair value of the consideration given. The excess should be reported as a ___________.
Business
1 answer:
spin [16.1K]3 years ago
4 0

Answer:

It will be reported as gain.

Explanation:

If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>

It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment

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