What does bargain purchase gain mean on the CPA exam?
Bargain purchase gain. The gain recognized when identifiable net assets acquired exceed what was paid. It is recognized in income only after everything has been remeasured and confirmed.
Defined against ASC 805-30-25-2.
Which CPA exam sections use bargain purchase gain?
Bargain purchase gain appears in the BAR section of the CPA exam.
Related terms
- recognized gain: The part of realized gain that actually goes on the return this year.
- net capital gain: Net long-term capital gain minus net short-term capital loss.
- net assets: Assets less liabilities.
- goodwill: An asset representing the future economic benefits of acquired assets not separately identified, measured as consideration less identifiable net assets.
- treasury stock: A company's own shares reacquired and not retired.
- liabilities assumed: Obligations the acquirer takes on as part of a combination.