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What is the purpose of the bump up in the tax values of the assets of a subsidiary that is sometimes available in a vertical amalgamation or wind up of a 90% owned subsidiary?

The bump up gives full recognition to the fact that the cost of acquiring a subsidiary usually exceeds both the total carrying values and total fair values of the subsidiary’s net assets.

The bump up gives partial recognition to the fact that the cost of acquiring a subsidiary usually exceeds both the total carrying values and total fair values of the subsidiary’s net assets.

The bump up gives partial recognition to the fact that the cost of acquiring a subsidiary always exceeds the total carrying values and total fair values of the subsidiary’s net assets.

The bump up gives full recognition to the fact that the cost of acquiring a subsidiary exceeds the total carrying values and total fair values of the subsidiary’s net assets.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91958441

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