- CFA Exams
- CFA Exam: Level II 2021
- Study Session 5. Financial Reporting and Analysis (1)
- Reading 13. Intercorporate Investments
- Subject 5. Business combinations
CFA Practice Question
In accounting for a business combination, a bargain purchase exists when
B. fair market value > purchase price.
C. fair market value < book value.
D. fair market value > book value.
E. fair market value < purchase price.
A. purchase price > book value.
B. fair market value > purchase price.
C. fair market value < book value.
D. fair market value > book value.
E. fair market value < purchase price.
Correct Answer: B
User Contributed Comments 1
| User | Comment |
|---|---|
| Mikehuynh | Bargain purchase = purchase price < fair market value. |