In a leveraged buyout in which no continuing ownership occurs, the new basis of accounting is always used in its entirety.

Name: In a leveraged buyout in which no continuing ownership occurs, the new basis of accounting is always used in its entirety.
Brand: Quizplus
Rating: 5.0 (53 reviews)

Question

Quizplus · Accepted Answer

In a leveraged buyout where there is no continuing ownership, the new basis of accounting is used because the transaction is considered a new acquisition, requiring the assets and liabilities to be recorded at their fair values on the acquisition date.

In a Leveraged Buyout in Which No Continuing Ownership Occurs