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Purchase Method

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9. At the date of an acquisition which is not a bargain purchase, the purchase method
A) consolidates the subsidiary's assets at fair market value and the liabilities at book value.
B) consolidates all subsidiary assets and liabilities at book value.
C) consolidates all subsidiary assets and liabilities at fair market value.
D) consolidates current assets and liabilities at book value, long-term assets and liabilities at fair market value.
E) consolidates the subsidiary's assets at book value and the liabilities at fair market value.

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According to FASB, if we use a purchase method (also called acquisition ...

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