Question: Using the acquisition method, when a bargain purchase occurs and the net amount of the fair values of the separately identified assets and liabilities acquired

Using the acquisition method, when a bargain purchase occurs and the net amount of the fair values of the separately identified assets and liabilities acquired exceed the fair value of the consideration transferred:

Multiple Choice

a gain on bargain purchase is recognized at the acquisition date.

assets are recorded at amounts below thelr assessed falr values.

a contingent llability is recognized.

Goodwill is recognized and tested for impalirment on an annual basis.

a loss on bargain purchase is recognized at the acquisition date.

Using the acquisition method, when a bargain purchase occurs and the

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