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Basic Question 2 of 20
In accounting for a business combination, a bargain purchase exists when
B. fair market value > purchase price.
C. fair market value < book value.
D. fair market value > book value.
E. fair market value < purchase price.
A. purchase price > book value.
B. fair market value > purchase price.
C. fair market value < book value.
D. fair market value > book value.
E. fair market value < purchase price.
User Contributed Comments 1
| User | Comment |
|---|---|
| Mikehuynh | Bargain purchase = purchase price < fair market value. |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe the classification, measurement, and disclosure under International Financial Reporting Standards (IFRS) for 1) investments in financial assets, 2) investments in associates, 3) joint ventures, 4) business combinations, and 5) special purpose and variable interest entities;
distinguish between IFRS and US GAAP in their classification, measurement, and disclosure of investments in financial assets, investments in associates, joint ventures, business combinations, and special purpose and variable interest entities;
analyze how different methods used to account for intercorporate investments affect financial statements and ratios.
CFA® 2025 Level II Curriculum, Volume 2, Module 10.