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Problem 1: A business combination may be legally structured as a merger, a consolidation, an investment in stock, or a direct acquisition of assets. Which of the following best describes a business combination that is legally structured as a merger?
Group of answer choices
Option 1: the surviving company is one of the two combining companies
Option 2: a parent-subsidiary relationship is established
Option 3: the surviving company is neither of the two combining companies
Option 4: an investor- investee relationship is established
Would the transaction increase or decrease individual asset accounts, individual liability accounts, and the Owner's Equity account?
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