ACC 703 Chapter Notes - Chapter All: Equity Method, Contingent Liability, Retained Earnings

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Only the acquirers c/s and r/e is used for the acquisition method. The research project meets the requirement to be recognized as an identifiable asset. Within a year of developing a prototype for a state-of-the-art medical device. Attributes a value of ,000 to this technology and knowledge. Capable of being separated or divided from other assets and could be sold. Double balance, legal expenses and similar out of cash/current assets and r/e. Under equity method, add in the proportionate amount of dep of the acq differential. If the trading value of nci is given, goodwill and nci are calculated differently. Nci is equal to the number of common shares multiplied by the share value multiplied by nci ownership. Goodwill is calculated separately for parent and nci. Acquisition price minus parents percentage of fv of assets. Nci minus ncis percentage of fv of assets. Differential and gw for both ci and nci when stock price is given.

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