tatement 1: Consolidated inventory on the statement of financial position is recorded at fair market value to the affiliated group. Statement 2: In a business combination resulting in a parent company-wholly owned subsidiary relationship, goodwill developed in the working paper elimination is attributed in its entirety to the parent. Statement 3: If a new entity is formed to issue equity interests to effect a business combination, one of the combining entities that existed before the combination shall be identified as the acquirer. Statement 4: If the intercompany seller is the subsidiary, it is the subsidiary's income that needs adjustment. Statement 5: On the date of the business combination and its partially owned subsidiary, the amount assigned to minority interest in net assets of subsidiary is based on the cost of the parent company's investment in the parents' common stock. Which statement/s is/are true?
Statement 1: Consolidated inventory on the
Statement 2: In a business combination resulting in a parent company-wholly owned subsidiary relationship,
Statement 3: If a new entity is formed to issue equity interests to effect a business combination, one of the combining entities that existed before the combination shall be identified as the acquirer.
Statement 4: If the intercompany seller is the subsidiary, it is the subsidiary's income that needs adjustment.
Statement 5: On the date of the business combination and its partially owned subsidiary, the amount assigned to minority interest in net assets of subsidiary is based on the cost of the parent company's investment in the parents' common stock.
Which statement/s is/are true?
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