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Initially posted by bbrownatl Check out Publish Alright, so it looks like a acquire really should be acknowledged. Now, one further dilemma. The Businesses transferring all of their assets and liabilities have been on the cash foundation of accounting.
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Once more, anything is being contributed to the new entity. This really is now my confusion. So it would appear the contribution in the Cash and N/P would crank out a $a hundred and fifty attain as the liabilities exceed the belongings. If The solution, is report a attain, that is easy. The attain is noted, retained earnings nets to $0, the balance sheet is clear and the entity features a $0 basis in the NewCo entity.
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