Answer with true or false. No need explanation. 1. Indirect cost incurred by the entity in business combination is recognized as expense

What is one of the primary objectives of accounting for business amalgamations?   A) To recognize the fair value of the acquired assets and liabilities. B) To minimize tax liabilities for the acquiring company. C) To maintain separate accounting records for the acquiring and acquired entities. D) To increase shareholder dividends in the acquiring company.

Pretzel acts as a sponsor in creating a special purpose entity (SPE) that will purchase Accounts Receivable from Pretzel. Under what circumstances will Pretzel be required to treat the SPE as a variable interest entity and consolidate it as its primary beneficiary .      a. Pretzel is not entitled to any profits that the SPE earns     b. Pretzel agrees to reimburse SPE shareholders in the event the SPE has losses.     c. Pretzel receives money from SPE for the fair value of assets that Pretzel sells to it     d. Pretzel has no voting rights or ability to direct SPE activities     e. The SPE has stockholders equity equal to 20% of  SPE assets   choose one

In paragraph 44 of Statement of Financial Accounting Standards No. 141, “Business Combinations,” the Financial Accounting Standards Board directed that if the sum of the fair values of assets acquired and liabilities assumed in a business combination exceeds the cost of the acquired enterprise, such excess should be allocated as a pro rata reduction of amounts that otherwise would have been assigned to noncurrent assets other than specified exceptions.Instructions What support, if any, do you find for the action of the FASB? Explain.