Stock issuance costs and direct combination costs

Reference no: EM13139250

How are stock issuance costs and direct combination costs treated in a business combination which is accounted for as an acquisition when the subsidiary will retain its incorporation?

A. Stock issuance costs are a part of the acquisition costs, and the direct combination costs are expensed.

B. Direct combination costs are a part of the acquisition costs, and the stock issuance costs are a reduction to additional paid-in capital.

C. Direct combination costs are expensed and stock issuance costs are a reduction to additional paid-in capital.

D. Both are treated as part of the acquisition consideration transferred.

E. Both are treated as a reduction to additional paid-in capital.

Reference no: EM13139250

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