
The reliable value of Citizen assets on the acquisition date was as follows: |Current assets |$ 800,000 | |Noncurrent assets | 600,000 | | |$1,400,000 | How should Publics account for the $200,000 difference between the median(a) value of the net assets acquired, $1,000,000, and the cost, $800,000? a.retained earnings should be trim backwards by $200,000 b.cur! rent assets should be record at $685,000 and back(prenominal) assets recorded at $515,000 c.a $200,000 gain on acquisition of business should be accepted d.a deferred credit of $200,000 should be set up and subsequently amortized to incoming net income over a decimal point non to exceed 40 years 3.Acquisition costs such(prenominal) as the fees of accountants and lawyers that were necessary to negotiate and consummate the purchase are a.recorded as a deferred asset...If you want to get a bountiful essay, order it on our website: OrderCustomPaper.com
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