In a purchase business combination in which common stock was acquired, the target company's monetary and nonmonetary assets are revalued to their current values for consolidated reporting purposes.

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In a purchase business combination, the assets (both monetary and nonmonetary) and liabilities of the target company are revalued to their fair market values on the acquisition date for the purpose of preparing consolidated financial statements. This revaluation reflects the actual cost to the acquirer and provides a more accurate representation of the combined entity's financial position.

In a Purchase Business Combination in Which Common Stock Was