[youngpete]

Purchase and acquisition method

In ques 775. The answer does not include the non interest nor the acuired entity stockhold equity portion as total consolidated stockholders equity.

But in q. 776. The answer includes 20% of total stockholder of the acquired co……

Really need help on this one!

Becker CPA review FAR question cpa-00427 has a totally different answer where it first calculates the acquired co. Net income. And. Then computes the cs , apic, non-controlling interest etc. etc. etc…

So what I really wanna kno is. What is the right answer

[Anonymous]

I was literally looking at this just yesterday, as it confused me as well. I don't have the questions in front of me, but if you read carefully (which I had to do several times it seems before I finally noticed it), one says that the combination is accounted for as a “purchase” and the other says it's accounted for as an “acquisition”. So basically, keep an eye out for which term is used and that should tell how to calculate it.

[Author]

Replies