Sharp Company will acquire 90 percent of Moore Company in a business combination. The total consideration has

Question:

Sharp Company will acquire 90 percent of Moore Company in a business combination. The total consideration has been agreed on, but the nature of Sharp's payment has not. It is expected that on the date the business combination is to be consummated, the fair value will exceed the book value of Moore's assets minus liabilities. Sharp desires to prepare consolidated that will include Moore's Explain how the amount of is determined.
b. From a theoretical standpoint, why should consolidated be prepared?
c. From a theoretical standpoint, what is usually the first necessary condition to be met before consolidated can be prepared?
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