Multiple Choice
Sya Ltd. acquired all the assets and liabilities of Littman Ltd. by issuing common shares to Littman. After this transaction, Littman owned 30% of Sya's outstanding shares. Which of the following statements is true?
A) Littman is now a subsidiary of Sya.
B) This is an intercorporate investment for Sya.
C) Sya does not need to prepare consolidated financial statements.
D) Sya should use the equity method to reflect its investment in Littman.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: On December 31, 20X6, the statements
Q34: What is the most common valuation method
Q35: Ski Ltd. has 500,000 shares outstanding. On
Q36: How is negative goodwill treated in accounting
Q37: Explain how a business combination could occur
Q39: On December 31, 20X6, the statements
Q40: Sya Ltd. acquired all the assets and
Q41: How should negative goodwill be shown on
Q42: After an exchange of shares in a
Q43: What does push-down accounting refer to?<br>A)Writing down