According to FASB Statement No.141,liabilities assumed in an acquisition will be valued at the ________.
A)estimated fair value
B)historical book value
C)current replacement cost
D)present value using market interest rates

Question

Quizplus · Accepted Answer

According to FASB Statement No.141, liabilities assumed in an acquisition will be valued at the estimated fair value. This means that the acquirer needs to estimate the fair value of the liabilities assumed on the acquisition date and recognize them as liabilities on its balance sheet. The fair value represents the amount that the acquirer would have to pay to settle the liability at the acquisition date.