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Business, 18.02.2020 21:51 madisonnxo
On January 1, 20X1, Prim Inc. acquired all of Scrap Inc.’s outstanding common shares for cash equal to the stock’s book value. The carrying amounts of Scrap’s assets and liabilities approximated their fair values, except that the carrying amount of its building was more than fair value. In preparing Prim’s 20X1 consolidated income statement, which of the following adjustments would be made?a. Decrease depreciation expense and recognize goodwill amortization. b. Increase depreciation expense and recognize goodwill amortization. c. Decrease depreciation expense and recognize no goodwill amortization. d. Increase depreciation expense and recognize no goodwill amortization.
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On January 1, 20X1, Prim Inc. acquired all of Scrap Inc.’s outstanding common shares for cash equal...
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