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    Under the acquisition method which of the following is true?

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    Jones Corp issues 100,000 shares of its previously unissued shares of common stock for all of the outstanding stock of Smith and Smith is dissolved. Jones pays for the following costs and expenses related to this acquisition of Smith:

    Registering and issuing securities

    Accountants' and legal fees

    Cost of closing duplicate facilities

    Salaries of Jones' employees assigned to the implementation of the merger

    Costs of shareholders' meeting to vote on the merger.

    Under the acquisition method which of the following statements is correct?

    1. All of the items listed above are treated as expenses of the purchase
    2. All of the items listed above except the cost of registering and issuing the securities are expensed by the combined entity
    3. Costs of registering and issuing the securities increase paid-in capital
    4. Accountants' and legal fees would be part of consideration transferred

    © BrainMass Inc. brainmass.com June 3, 2020, 7:39 pm ad1c9bdddf
    https://brainmass.com/business/mergers-and-acquisitions/acquisition-method-statements-fees-expenses-merger-107425

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    Although the FASB for Business Combinations: Applying the Acquisition Method?Joint ...

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