On October 1, X company acquired for cash all the outstanding ordinary shares of Y Company. Both companies have a December 31 year-end and have been in business for many years. Consolidated net income for the year ended December 31 should include net income of A. X for 12 months and Y for 3 months B. X for 3 months and Y for 3 months C. X for 12 months and
On October 1, X company acquired for cash all the outstanding ordinary shares of Y Company. Both companies have a December 31 year-end and have been in business for many years. Consolidated net income for the year ended December 31 should include net income of A. X for 12 months and Y for 3 months B. X for 3 months and Y for 3 months C. X for 12 months and
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 1, X company acquired for cash all the outstanding ordinary shares of Y Company. Both companies have a December 31 year-end and have been in business for many years. Consolidated net income for the year ended December 31 should include net income of
A. X for 12 months and Y for 3 months
B. X for 3 months and Y for 3 months
C. X for 12 months and Y for 12 months
D. X for 12 months but no income from Y
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