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Schweser Practice Exams pg 121 Q97

The question asks for the current assets after acquisition - when acquiring the acquiree's assets should go on the acquirers B/S as a NON CURRENT asset right? Anyone else put 'A' for this...explanations? Am i wrong?

Or is the above only applicable to Equity method when you would simply add an 'Investment Account' as the non current asset?

current assets become current assets in acquisition method.

a non-current asset, as you have pointed out above is created in the equity method.

CP

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