Reference no: EM132482217

Question 1. Blair Company acquires all of the assets and liabilities of Tomlinson Corporation, in a transaction reported as a merger. How are the assets and liabilities of Blair and Tomlinson reported?

a. Tomlinson's assets and liabilities remain at book value, and Blair's assets and liabilities are reported at fair value at the date of acquisition

b. Blair's assets and liabilities remain at book value, and Tomlinson's assets and liabilities are reported at fair value at the date of acquisition

c. The assets and liabilities of both Blair and Tomlinson are reported at fair value at the date of acquisition

d. The assets and liabilities of both Blair and Tomlinson are reported at book value at the date of acquisition

Question 2. The following items have been identified for an acquiree company. Which one(s) are separately capitalized by the acquiring company, per FASB ASC 805?

a. Developed technology, brand names, future cost savings

b. Skilled workforce, potential contracts, future costing savings, favorable press reports

c. Brand names, potential contracts, in-process research and development, favorable press reports

d. In-process research and development, brands names, developed technology