Question

On sale of a firm to a company, the purchase consideration is calculated by​

Answer 1

Answer:

Under this method, purchase consideration is calculated by adding up the values of various assets taken over by the purchasing company and then deducting there from the values of various liabilities taken over by the purchasing company.

Explanation:

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Answer 2

On sale of a corporation to a company, the acquisition attention is calculated with the aid of using purchasing company.

On sale of a corporation to a company, the acquisition attention is calculated with the aid of using purchasing company. Explanation:

• Purchase Consideration= Total Amount (cash value) of fairness shares, Preference Shares and Cash obtained from bought business enterprise for the shareholders (equity and Preference) of transferor business enterprise.
• Notes: Nothing is deducted.
• Whatever is obtained from shopping for business enterprise is introduced to it.
• Under this method, purchase interest is calculated with the aid of using inclusive of up the values of various assets taken over through manner of approach of the shopping for company.
• After which, deducting there from the values of various liabilities taken over through manner of approach of the shopping for business enterprise.

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