Foi the fiscal year ending December 31, how will consolidated net income of this business combination be determined if Hill acquires all of Loring’s stock?

a. Hill’s income for the past year plus Loring’s income for the past six months.

b. Hill’s income for the past year plus Loring’s income for the past year.

c. Hill’s income for the past six months plus Loring’s income for the past six months.

d. Hill s income for the past six months plus Loring’s income for the past year.

Hill, Inc., obtains control over Loring, Inc., on July 1. The book value and fair value of Loring’s accounts on that date (prior to creating the combination) follow, along with the book value of Hill’s accounts:
Hill Loring Loring Book Values Book Values Fair Values Revenues.
$(250,000)
$(130,000)
Expenses.
170,000 80,000 Retained earnings, 1/1.
(130,000)
(150,000)
Cash and receivables.
140,000 60,000 $ 60,000 Inventory.
190,000 145,000 175,000 Patented technology (net)....
230,000 180,000 200,000 Land.
400,000 200,000 225,000 Buildings and equipment (net). . .
100,000 75,000 75,000 Liabilities.
(540,000)
(360,000)
(350,000)
Common stock.
(300,000)
(70,000)
Additional paid-in capital.
(10,000)
(30,000