The acquisition analysis calculates the fair value of the net identifiable assets and liabilities acquired based on the book value of the pre-acquisition equity of the subsidiary, adjusted for the following:

A) previously recorded goodwill in the subsidiary at acquisition date
B) fair value adjustments for the assets and liabilities that were recorded in the subsidiary's accounts at acquisition date based on carrying amounts different from fair value
C) the fair value of the assets and liabilities not recorded in the subsidiary's accounts at acquisition date
D) all of the options are correct

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Mariah Hintz · Accepted Answer

Final Answer : D, Explanation :  All options are correct and are part of the adjustments made to calculate the fair value of the net identifiable assets and liabilities acquired during the acquisition analysis. Goodwill is adjusted for as it was previously recorded in the subsidiary's book value, fair value adjustments are made for assets and liabilities recorded at carrying amounts different from fair value, and the fair value of assets and liabilities not previously recorded are also considered.

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