When does the measurement period end for a business combination in which there was

incomplete accounting information on the date of acquisition? When the acquirer

receives the information or one year from the acquisition date, whichever occurs earlier.
On the final date when all contingencies are resolved. Thirty days from the date of
acquisition. At the end of the reporting period in the year of acquisition.
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When the acquirer receives the information or one year from the acquisition date,
whichever occurs earlier.

On April 1, year 1, Parson Corp. purchased 80% of the outstanding stock of Sloan Corp.
for 700,000 cash. Parson determined that the fair value of the net identifiable assets was
800,000 on the date of acquisition. The fair value of Sloan’s stock at date of acquisition
was 18 per share. Sloan had a total of 50,000 shares of stock issued and outstanding prior
to the acquisition. What is the amount of goodwill that should be recorded by Parson at
date of acquisition?
0
60,000 80,000 120,000
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80,000

On June 30, 2018, Wyler Corporation acquires Boston Corporation in a transaction

properly accounted for as a business acquisition. At the time of the acquisition, some of
the information for valuing assets was incomplete. How should Corporation Wyler,
account for the incomplete information in preparing its financial statements immediately
after the acquisition? Do not record the uncertain items until complete information is
available. Record a contra account to the investment account for the amounts
involved. Record the uncertain items at the book value of the acquiree. Record the
uncertain items at a provisional amount measured at the date of acquisition.
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Record the uncertain items at a provisional amount measured at the date of acquisition.