On October 1, X Company acquired for cash all of Y Companys outstanding common stock. Both companies
Question:
On October 1, X Company acquired for cash all of Y Company’s outstanding common stock. 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 Company for 3 months and Y Company for 3 months.
b. X Company for 12 months and Y Company for 3 months.
c. X Company for 12 months and Y Company for 12 months.
d. X Company for 12 months, but no income from Y Company until Y Company distributes a dividend.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Advanced Financial Accounting
ISBN: 9781260165111
12th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd
Question Posted: