Which of the following methods of accounting for a business combination assumes that the parent company purchases the subsidiary and must account for the acquisition as it would for the acquisition of any asset?

Question

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The purchase method assumes that the parent company purchases the subsidiary and must account for the acquisition as it would for the acquisition of any asset. Under this method, the parent company records the assets and liabilities of the subsidiary at their fair market values on the date of acquisition.

Which of the Following Methods of Accounting for a Business