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These "Company A"/"Company B" style questions drive me absolutely crazy.  Why?  BECAUSE THERE'S NO "ONE SIZE FITS ALL" answer anybody can give to these questions.  HOW you account for the transaction depends entirely on how the deal was structured.  You may be exactly right in your approach here, you may be 100% wrong.  There's simply no way to tell because the companies involved HAVEN'T BEEN DISCLOSED.