Final answer:
A scenario where the fair market value of net assets exceeds the price paid for a company is a bargain purchase for the buyer, typically resulting in a gain.
Step-by-step explanation:
When the fair market value of net assets exceeds the price paid to acquire a company, this scenario is referred to as a bargain purchase. For the buyer, this means they have purchased the company for less than its fair market value, which typically leads to a gain on the acquisition that should be recognized in the financial statements. This situation can arise from various circumstances, such as distressed sales, errors in estimating the value of the acquired company's assets, or unique market conditions.