Assume that the fair value is greater than carrying amount at the date of acquisition for the

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Assume that the fair value is greater than carrying amount at the date of acquisition for the subsidiary’s long-term debt with 10 years to maturity. Briefly explain whether this fact will increase, decrease or not change the debt-to-equity ratio when preparing the consolidated balance sheet at the date of acquisition and one year after the date of acquisition.

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Modern Advanced Accounting In Canada

ISBN: 9781260881295

10th Edition

Authors: Hilton Murray, Herauf Darrell

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