Corporation A acquires Corporation T for $90M, using 25% debt and 75% equity, in 2006. The fair value and book value of net assets acquired are $60M. Which of the following statements are true?
I. If pooling-of-interests accounting is used, no goodwill will be recorded.
II. If purchase accounting is used, goodwill of $30M will be recorded.
III. If purchase accounting is used, Corporation A's stockholders' equity will increase by $90M on date of acquisition.
IV. If purchase accounting is used, net income in future years will be lower than if pooling-of-interests was used.

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The Answer of Corporation A acquires Corporation T for $90M, using 25% debt and 75% equity, in 2006. The fair value and book value of net assets acquired are $60M. Which of the following statements are true?
I. If pooling-of-interests accounting is used, no goodwill will be recorded.
II. If purchase accounting is used, goodwill of $30M will be recorded.
III. If purchase accounting is used, Corporation A's stockholders' equity will increase by $90M on date of acquisition.
IV. If purchase accounting is used, net income in future years will be lower than if pooling-of-interests was used.

Corporation a Acquires Corporation T for $90M, Using 25% Debt