In the Year Ended June 30 20X7,Woof Ltd Acquired the Assets

Multiple Choice

In the year ended June 30 20X7,Woof Ltd acquired the assets and assumed the liabilities of the Doggie Biscuits operation from Fido Ltd for $10,000,000.At the date of acquisition,the fair values of the net separable assets and liabilities of the operation were $8,000,000 and $1,000,000 respectively.Based on this information,the transaction has resulted in:

A) A business combination of Woof Ltd and Doggie Biscuits.
B) The acquisition of certain assets and liabilities, which is not a business combination since Doggie Biscuits is not a business but simply part of the Fido Ltd business.
C) The acquisition of certain assets and liabilities, which is not a business combination since Doggie Biscuits is not managed to provide a return to investors but only to provide a return to Fido Ltd.
D) None of the above.