Fair values of identifiable net assets

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Under the acquisition method, if the fair values of identifiable net assets exceed the value implied by the purchase Pratt of the acquired company, the excess should be:

a) accounted for as goodwill.

b) allocated to reduce current and long-lived assets.

c) allocated to reduce current assets and classify any remainder as an extraordinary gain.

d) allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain.

Reference no: EM13159198

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