Professional Documents
Culture Documents
Business Combinations
– Lower risk
– Avoidance of takeovers
Consolidation
– Occurs when a new corporation is formed to take
over the assets and operations of two or more
separate business entities and dissolves the
previously separate entities.
Cash 240,000
Receivables XXX
Inventories XXX
Goodwill XXX
Record a loss if the implied fair value is less than the carrying
value of the goodwill.