8. Assume zero tax rate. ABC, Inc. acquired 100% of the assets of DEF Corporation for $15,000,000 immediately prior to close of business on 12/31/19 when the book value and fair value of net assets of DEF was $20,000,000 (no differences).

For the entire year ended 12/31/19, DEF reported net income of $6,000,000. As a result of doing the acquisition on 12/31/19, the following is the impact on the total consolidated pretax income of ABC for the year ended 2019:

a. Zero impact as the acquisition was made on the last day of the year

b. $500,000 increase in income

c. $500,000 decrease in income

d. $5,000,000 increase in income

e. None of the above