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SOFE AFE Exam - Topic 2 Question 61 Discussion

Actual exam question for SOFE's AFE exam

Question #: 61
Topic #: 2

[All AFE Questions]

Which of the following is NOT included when initial acquisition of Subsidiary, Controlled and Affiliated Entities (SCA) is recorded as the sum of?

Aany cash payment

Bthe fair value of other assets distributed

Cthe fair value of any expenses

Dany direct costs of the acquisition

Show Suggested Answer

Suggested Answer: D

by Cathrine at Aug 08, 2023, 11:46 PM

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Rosalind

8 months ago

I thought all costs related to acquisition were counted.

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Margery

8 months ago

A and D are definitely included, just not C.

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Sabra

8 months ago

Wait, are you sure about that? Seems off.

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Hollis

8 months ago

I agree, C is the right answer!

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Alexia

9 months ago

It's definitely not C, expenses aren't included.

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Rickie

9 months ago

I believe cash payments and direct costs are definitely included, but I’m leaning towards option C as the correct answer since expenses don’t count.

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Kirby

9 months ago

I’m a bit confused about the fair value of other assets. I thought that was included, but now I’m second-guessing myself.

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Sena

9 months ago

This question feels familiar; I think we practiced something similar where we discussed direct costs being part of the acquisition.

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Oneida

9 months ago

I think I remember that the fair value of expenses is usually not included in the acquisition cost, but I'm not entirely sure.

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Venita

9 months ago

I'm a little confused by the wording of this question. It seems like it's asking for specific Magento BI features to use, but I'm not sure I fully understand how they would apply to this scenario. I'll need to review the options carefully and try to match them up with the merchant's goals.

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Candida

9 months ago

I'm feeling pretty confident about this one. I believe the correct answers are B and E - declaring fields transient and implementing only writeReplace to replace the instance with a serial proxy.

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Fannie

10 months ago

I practiced a similar question where we had to set up user permissions, and I feel like SIP profiles were important, but I can't remember the exact details now.

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Alysa

10 months ago

Wait, what's the difference between traffic monitoring and system monitoring? I want to make sure I'm choosing the right tools here.

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Edwin

1 year ago

Wait, are we talking about the fair value of my coffee expenses during the acquisition negotiations? Because that's non-negotiable, my friend.

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Stephaine

1 year ago

D) any direct costs of the acquisition

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Cory

1 year ago

C) the fair value of any expenses

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Malcolm

1 year ago

B) the fair value of other assets distributed

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Pearline

1 year ago

A) any cash payment

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Hermila

1 year ago

I've got it! The correct answer is C. Who puts the fair value of expenses in the initial acquisition recording? That's just silly.

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Rikki

1 year ago

Haha, the fair value of expenses? What, are they trying to trick us? Definitely C is the right answer here.

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India

1 year ago

I think C is the correct answer too. It wouldn't make sense to include the fair value of expenses in the initial acquisition.

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Terrilyn

1 year ago

Yeah, it's a bit tricky but C makes the most sense. They wouldn't include expenses in the initial recording.

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Marylin

1 year ago

I agree, C is definitely the right answer. They can't include the fair value of expenses in the initial acquisition.

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Vicente

1 year ago

Hmm, I thought all the costs associated with the acquisition would be included. This is tricky, I'll have to think about it more.

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Izetta

1 year ago

C) the fair value of any expenses

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Carmen

1 year ago

B) the fair value of other assets distributed

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Beth

1 year ago

A) any cash payment

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Iluminada

1 year ago

I'm pretty sure the correct answer is C) the fair value of any expenses. Acquisition costs are typically not included in the initial recording of the acquisition.

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Avery

1 year ago

Yes, that's correct. Expenses are typically not included in the initial sum of the acquisition.

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Apolonia

1 year ago

Good to know. Thanks for clarifying!

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Monte

1 year ago

Yes, that's correct. Those three items are typically included in the initial acquisition recording.

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Celia

1 year ago

So that means A) any cash payment, B) the fair value of other assets distributed, and D) any direct costs of the acquisition are included, right?

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Josefa

1 year ago

I think you're right, C) the fair value of any expenses is not included in the initial acquisition recording.

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Dewitt

1 year ago

I think you're right, C) the fair value of any expenses is not included in the initial acquisition recording.

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Felix

1 year ago

I'm not sure, but I think D) any direct costs of the acquisition is also not included in the initial acquisition cost.

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Marguerita

1 year ago

I agree with Beth, because expenses are not included in the initial acquisition cost.

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Beth

1 year ago

I think the answer is C) the fair value of any expenses.

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