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In order to accomplish a business combination, Prescott Comp…
In оrder tо аccоmplish а business combinаtion, Prescott Company acquired all the outstanding common shares of Sylvestre Company, a business entity, for cash equal to the carrying amount of Sylvestre’s net assets. The carrying amounts of Sylvestre’s assets and liabilities approximated their fair values at the acquisition date, except for the carrying amount of its building was more than fair value. In preparing Prescott’s year-end consolidated income statement, what is the effect of recording the assets acquired and liabilities assumed at fair value, and should goodwill amortization be recognized? Depreciation Expense Goodwill Amortization [Depreciation] [Goodwill]
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