If there is mutual indebtedness between the transferor company and the transferee company in business combination, which of the following is correct?
A. No adjustment is required in the books of the transferor company.
B. Adjustment is required in the books of the transferor company.
C. No adjustment is required in the books of the transferee company.
D. None of the above
Answer:A
If there is mutual indebtedness between the transferor company and the transferee company in business combination, which of the following is correct?
A. No adjustment is required in the books of the transferor company. B. Adjustment is required in the books of the transferor company. C. No adjustment is required in the books of the transferee company. D. None of the above