Question: 3. a. When a merger occurs, how do understating assets or overstating liabilities and reserves increase the post-acquisition income of the parent company? Explain in

a. When a merger occurs, how do understating assets or overstating liabilities and reserves increase the post-acquisition income of the parent company? Explain in as much detail as appropriate

b.How do cookie jar reserves differ from reserves for liabilities (e.g., reserves for deferred taxes). Explain in as much detail as appropriate

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