SOFE Exam AFE Topic 2 Question 61 Discussion

Actual exam question for SOFE's AFE exam

Question #: 61
Topic #: 2

[All AFE Questions]

Which of the following is NOT included when initial acquisition of Subsidiary, Controlled and Affiliated Entities (SCA) is recorded as the sum of?

Aany cash payment

Bthe fair value of other assets distributed

Cthe fair value of any expenses

Dany direct costs of the acquisition

Show Suggested Answer

Suggested Answer: D

by Cathrine at Aug 08, 2023, 11:46 PM

Limited Time Offer

25%

Off

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Iluminada

2 days ago

I'm pretty sure the correct answer is C) the fair value of any expenses. Acquisition costs are typically not included in the initial recording of the acquisition.

upvoted 0 times

...

Felix

4 days ago

I'm not sure, but I think D) any direct costs of the acquisition is also not included in the initial acquisition cost.

upvoted 0 times

...

Marguerita

7 days ago

I agree with Beth, because expenses are not included in the initial acquisition cost.

upvoted 0 times

...

Beth

11 days ago

I think the answer is C) the fair value of any expenses.

upvoted 0 times

...