_____ In purchase accounting, a bargain purchase element exists in which of the following circumstances?
A) Cost is below book value.
B) Current value is below book value.
C) Cost and current value are below book value.
D) Cost is below current value.
E) None of the above.

Question

Quizplus · Accepted Answer

A bargain purchase occurs when the purchase price (cost) of an acquired company is less than its fair market value (current value), resulting in a gain for the acquirer.

_____ in Purchase Accounting, a Bargain Purchase Element Exists in Which