Question

1. On sale of firm to a company, the purchase consideration is calculated by
(a) Lumpsum method
(b) Payment method
(c) Net Assets method
(d) Any of the above
Shares or debentures received from company on sale affirmara distributed among the nastere​

Answer 1

Answer:

Answer :

c) Net Assets method

Answer 2

(d) Any of the above

Explanation:

• Net Value or Net Assets Method: This method calculates the purchase price by adding the values ​​of various assets assumed by the acquiring company and subtracting them from the values ​​of various liabilities assumed by the acquiring company.
• Purchase Price = Total amount (monetary value) of shares, preferred stock, and cash received from the company purchased by the shareholders (shares and preferreds) of the transferring company.
• Payment method: This is the payment made in cash, or it can be in the form of shares or debentures.
• Lumpsum method: This method is used to clear payments of between two companies. It is mostly the fixed amount that does not need a huge calculation.

#SPJ3