Which of the following situations best describes a

35. Which of the following situations best describes a business combination to be accounted for as a statutory
merger?
A. Both companies in a combination continue to operate as separate, but related, legal entities.
B. Only one of the combining companies survives and the other loses its separate identity.
C. Two companies combine to form a new third company, and the original two companies are dissolved.
D. One company transfers assets to another company it has created.
36. A statutory consolidation is a type of business combination in which:
37. Which of the following observations refers to the term differential ?

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Chapter 2 - Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries with No Differential
38. Which of the following observations concerning "goodwill" is NOT correct?
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12
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