When an Acquisition Is Made and Accounted for Using the Purchase

When an acquisition is made and accounted for using the purchase method, the post-acquisition common stock account:

A) is the sum of the pre-acquisition common stock accounts of the two combining companies.
B) is the pre-acquisition common stock account of the acquired company only.
C) is the pre-acquisition common stock account of the acquiring company plus the par value of new stock issued to affect the acquisition.
D) is the pre-acquisition common stock account of the acquiring company plus the fair value of new stock issued to affect the acquisition.

Correct Answer:

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