Par company and sub company were combined in an acquisition


Par Company and Sub Company were combined in an acquisition transaction. Par was able to acquire Sub at a bargain price. The sum of the fair values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Par. After eliminating previously recorded goodwill, there was still excess value (bargain purchase).

How should Par Company account for the excess value (bargain purchase)?

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Financial Accounting: Par company and sub company were combined in an acquisition
Reference No:- TGS01603009

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