Question -
1. Different types of legal arrangements that can take place to create a business combination.
2. What the term consolidated financial statements means.
3. Within the consolidation process, discuss the purpose of a worksheet.
4. Peter Company obtains all of the common stock of Sam Inc. by issuing 50,000 shares of its own stock. Under these circumstances, why might the determination of an acquisition price be difficult?
5. What is the accounting basis for consolidating assets and liabilities in a business combination recorded using the acquisition method?