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Investing Glossary:
Purchase method
Copyright 2012,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
- P -
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| Definition: |
| Accounting for an Acquisition using Market value for the Consolidation of the two entities` net Assets on the balance sheet. Generally, depreciation/amortization will increase for this method (due to the creation of goodwill) compared to the pooling method resulting in lower Net income.
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