In a lump-sum purchase of the shares of two or more companies, their relative par values are used as the basis of the allocation of cost to each.

Name: In a lump-sum purchase of the shares of two or more companies, their relative par values are used as the basis of the allocation of cost to each.
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Quizplus · Accepted Answer

In a lump-sum purchase of the shares of two or more companies, their fair market values are used as the basis of the allocation of cost to each, not their par values.

In a Lump-Sum Purchase of the Shares of Two or More