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In the Periods After Acquisition, the Gain on Bargain Purchase

Question 48

Multiple Choice

In the periods after acquisition, the gain on bargain purchase will be recognised in the pre-acquisition entries as:


A) a credit to gain for the current period.
B) a debit to retained earnings (closing balance) .
C) a decrease in the amount of debit to retained earnings (opening balance) .
D) no adjustment is necessary.

Correct Answer:

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