On October 1, X Company acquired for cash all of Y Companys outstanding common stock. Both companies

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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.

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Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

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