Direct consolidation costs

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Reference no: EM1361550

How are stock issuance costs and direct consolidation costs treated in a business combination which is accounted for as a purchase, when the subsidiary will retain its incorporation?
A) Stock issuance costs are a part of the acquisition costs, and the direct consolidation costs are a reduction to additional paid-in capital.
B) Direct consolidation costs are a part of the acquisition costs, and the stock issuance costs are a reduction to additional paid-in capital.
C) Both are treated as part of the acquisition price.
D) Both are treated as a reduction to additional paid-in capital.
E) Both are treated as a reduction to retained earnings.

Reference no: EM1361550

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