Question: Explain how purchase accounting is implemented in a merger. Does the accounting profession now require this method? How is any premium that the acquiring firm

Explain how purchase accounting is implemented in a merger. Does the accounting profession now require this method? How is any premium that the acquiring firm paid over the acquired firm’s book value treated subsequent to a merger?

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With purchase accounting the targets assets are appraised and are then put on the acquirers books at their appraised value Often the actual price paid ... View full answer

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