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  2. Topic
    Business
  3. Study Set
    Mergers Acquisitions
  4. Exam
    Exam 16: Alternative Exit and Restructuring Strategies: Divestitures, spin-Offs, carve-Outs, split-Ups, and Split-Offs
  5. Question
    The Divesting Firm Is Required to Recognize a Gain or Loss
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The Divesting Firm Is Required to Recognize a Gain or Loss

Question 63

Question 63

True/False

The divesting firm is required to recognize a gain or loss for financial reporting purposes equal to the difference between the book value of the consideration received for the divested operation and its fair value.

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