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  3. 2. how should the transaction costs of issuing sha

2. How should the transaction costs of issuing shares in an acquisition be recorded by...

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Accounting

2. How should the transaction costs of issuing shares in an acquisition be recorded by the investor company?

a) Capitalized as part of the cost of the acquired shares.

b) Expensed in the income statement.

c) Deducted from share capital, net of related income tax benefits.

d) Deducted in total from shareholders' equity as a separate component of AOCI.

e) None of the above

3. The equity method of accounting under IFRS is normally applied:

a) when the investee is no longer designated as being a subsidiary.

b) when a contractual agreement is written up providing control over an investee.

c) on that date when it becomes clear that an investor has no power to participate in the financial and operating decisions of the investee.

d) from the date the investor obtains significant influence over the investee.

e)None of the above

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