B is corrent. At the date of acquisition, the assets and liabilities would be recorded at their FV with any excess of acquisition cost recorded as goodwill. Cash would be credited for the cash consideration paid. As the net assets would not change as a result of this acquisition, the consolidated equity would be the same as Beni Corp.’s before the acquisition, $1,250,000.
A is incorrect. At the date of acquisition, the assets and liabilities would be recorded at their FV with any excess of acquisition cost recorded as goodwill. Cash would be credited for the cash consideration paid. As the net assets would not change as a result of this acquisition, the consolidated equity would be the same as Beni Corp.’s before the acquisition, $1,250,000.
C is incorrect. At the date of acquisition, the assets and liabilities would be recorded at their FV with any excess of acquisition cost recorded as goodwill. Cash would be credited for the cash consideration paid. As the net assets would not change as a result of this acquisition, the consolidated equity would be the same as Beni Corp.’s before the acquisition, $1,250,000.
D is incorrect. At the date of acquisition, the assets and liabilities would be recorded at their FV with any excess of acquisition cost recorded as goodwill. Cash would be credited for the cash consideration paid. As the net assets would not change as a result of this acquisition, the consolidated equity would be the same as Beni Corp.’s before the acquisition, $1,250,000.
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