Final answer:
Acquisition credits are used to offset losses incurred by an acquiring company in a company acquisition.
Step-by-step explanation:
Acquisition credits refer to the credits that a company acquires when it purchases another company. In terms of roll-offs, acquisition credits can be used to offset any outstanding debits or losses incurred by the acquiring company.
For example, let's say Company A acquires Company B. If Company B has a net loss of $100,000, Company A can use its acquisition credits to offset this loss. This reduces the impact of the loss on Company A's financial statements.
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