Zak Company and Clark Company were combined in a purchase transaction. Zak Company was able to acquire Clark at a bargain price. The fair market value of Clark's net assets exceed the price paid by Zak to acquire the company. Proper accounting treatment by Zak is to report the excess of fair value over purchase price as ... (a) A gain. (b) A loss. (c) A liability. (d) Paid-in capital.
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Home » Business » Zak Company and Clark Company were combined in a purchase transaction. Zak Company was able to acquire Clark at a bargain price. The fair market value of Clark's net assets exceed the price paid by Zak to acquire the company.