Government Accounting Reviewer

The method of accounting for investment in subsidiary that is appropriate for the acquisition method of combination is:

• The cost method

• The market value method

• The equity method

• The pooling method

BA Company owns 15% of total outstanding shares of B Company. What method of accounting should A Company use in reporting this equity investments to its Statement of Financial Position?

• The cost method

• The market value method

• The equity method

• The pooling method

A Company owns 25% of total outstanding shares of B Company. What method of accounting should A Company use in reporting this equity investments to its Statement of Financial Position?

• The cost method

• The market value method

• The equity method

• The pooling method

Microsoft is acquired Nuance for $56 per share an all-cash transaction totaling $19.7 billion, inclusive of Nuance's net debt. This will double Microsoft's total addressable market in the healthcare provider space, to nearly $500 billion. What type of business combination is this?

• merger

• consolidation

• stock acquisition

• none of the above

On May 17, 2021, Discovery, Inc, announced that it will acquire AT&T Inc.'s Warner Media business for $43 billion. Pursuant to the deal, Warner Media and Discovery would combine operations to create a standalone entertainment company. What type of business combination is this?

• merger

• consolidation

• stock acquisition

• none of the above

Citibank announced on December 23, 2021, that it has chosen the bid of Union Bank of the Philippines to acquire Citibank's consumer banking operations in the Philippines. Citibank will continue its institutional business in the Philippines, serving more than 950 multinational corporations, including 90% of the top 20 companies on the Philippine Stock Exchange. What type of business combination is this?

• merger

• consolidation

• stock acquisition

• none of the above

United Coconut Planters Bank (UCPB) has announced on its website that it will merge with Land Bank of the Philippines (LANDBANK), with LANDBANK as the surviving entity. What type of business combination is this?

• merger

• consolidation

• stock acquisition

• none of the above

The merger of RNG Coastal Bank, Inc. (A Rural Bank) and Banco Maximo, Inc. (A Rural Bank) has been approved on November 23, 2021. The merged bank will be known as Banco Maximo-RNG Coastal Corp. and will do business under the name and style of RNG Bank. RNG Bank started operating as a merged rural bank on December 1, 2021. What type of business combination is this?

• merger

• consolidation

• stock acquisition

• none of the above

Katipunan Bank Inc. (A Rural Bank) has merged with Rural Bank of Siocon (Zamboanga del Norte) Inc. to form a new rural bank named Katipunan Banking Corporation "A Rural Bank". What type of business combination is this?

• merger

• consolidation

• stock acquisition

• none of the above

BDO Network Bank Inc. has acquired the gross loan receivables and assumed the recorded deposit labilities of Rural Bank of Pandi (Bulacan) Inc. The rural bank ceased operations on October 31, 2019, completion date of the transaction. What type of business combination is this?

• merger

• consolidation

• stock acquisition

• none of the above