Which of the following statements pertaining to any acquisition differential arising from a joint venture is correct?
A) The acquisition differential arising from a newly formed joint venture is
immediately charged to the retained earnings of each venturer on a pro-rata basis.
B) The acquisition differential arising from a newly formed joint venture is allocated
across the venture's identifiable net assets.
C) There can be no acquisition differential arising from the formation of a new joint
Venture.
D) An acquisition differential may arise when a venturer increases its ownership
percentage of a joint venture.
C) There can be no acquisition differential arising from the formation of a new joint
Venture.
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