In this lesson, Nick Palazzolo, CPA, dives into the complexities of business combinations and consolidations with a practical approach by exploring various practice questions. He begins by breaking down the concept of a bargain purchase, clarifying when goodwill is recognized and why the notion of negative goodwill doesn't apply. Nick then shifts to analyzing a consolidation scenario involving intercompany transactions, walking through the calculations needed to correctly report consolidated cost of goods sold. By engaging with these examples, Nick demystifies the process, offers tips for understanding common pitfalls, and provides clear strategies for tackling similar problems on the exam.
This video and the rest on this topic are available with any paid plan.
See Pricing