The purchase consideration that is lower than the net asset implies that; the buyer has gained the advantage of?

By: |Published on: Dec 1|Categories: Accounting JAMB| 0 comments

A. net income
B. revenue reserve
C. capital reserve
D. net loss

Correct Answer:

Option C – capital reserve

Explanation

Capital reserve is derived from the accumulated capital surplus of a company, created out of capital profit.

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