On the date that one company acquires 100% of the voting stock of another company,the book value of the acquired assets and liabilities will be combined with book values of the assets and liabilities of the acquiring company.

Question

Quizplus · Accepted Answer

When one company acquires 100% of the voting stock of another company, the acquired assets and liabilities are typically recorded at their fair market value, not their book value, on the acquisition date. This process is part of purchase accounting and may result in the recognition of goodwill if the purchase price exceeds the fair value of the net assets acquired.

On the Date That One Company Acquires 100% of the Voting