On April 1, 2014, Paramount Company acquires 100% of the outstanding stock of Yester Company on the open market. Paramount and Yester have December 31 fiscal year ends. Under GAAP, a consolidated income statement for the year ending December 31, 2014, will include
A. 100 percent of the revenues and expenses in 2014 of Yester Company after January 1, 2014.
B. no revenues and expenses in 2014 of Yester Company.
C. 80 percent of the revenues and expenses in 2014 of Yester Company.
D. 100 percent of the revenues and expenses in 2014 of Yester Company after April 1, 2014.
Answer:D
On April 1, 2014, Paramount Company acquires 100% of the outstanding stock of Yester Company on the open market. Paramount and Yester have December 31 fiscal year ends. Under GAAP, a consolidated income statement for the year ending December 31, 2014, will include
A. 100 percent of the revenues and expenses in 2014 of Yester Company after January 1, 2014. B. no revenues and expenses in 2014 of Yester Company. C. 80 percent of the revenues and expenses in 2014 of Yester Company. D. 100 percent of the revenues and expenses in 2014 of Yester Company after April 1, 2014.