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Mega Corporation Acquired 65% of the Voting Shares of Forko

Question 8

Multiple Choice

Mega Corporation acquired 65% of the voting shares of Forko Ltd and consolidated its accounts by restating assets and liabilities of the subsidiary at fair value on the date the shares were acquired. What method of accounting for the business combination is Mega Corporation using?


A) Purchase method
B) Fair value method
C) Pooling method
D) Current replacement cost method

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