Characteristic of a business combination

Reference no: EM13145575

Which one of the following is a characteristic of a business combination that should be accounted for as a purchase?

a. The combination must involve the exchange of equity securities only.

b. The transaction clearly establishes an acquisition price of the company being acquired.

c. The two companies may be about the same size and it is difficult to determine the acquired company and the acquiring company.

d. The transaction may be considered to be the uniting of the ownership interests of the companies involved.

e. The acquired subsidiary must be smaller in size than the acquiring parent.

Reference no: EM13145575

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