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Dupuis Ltd

Question 12

Multiple Choice

Dupuis Ltd.acquired Waul Ltd.through a business combination using the direct method.How should Waul record this on its books?


A) Waul should debit an "Investment in Dupuis" account and credit its share capital account.
B) Waul should debit an "Investment in Dupuis" account and remove all its asset and liability accounts.
C) Waul should close all its balance sheet accounts.
D) No entry should be made.

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