ba.edu/ultra/courses/_16122_1/grades/assessment/_721612_1/overview/attempt/_1846360_1?courseld=_16122_1 4 OF 4 QUESTIONS REMAINING Blank 8 Add your answer Blank 9 Add your answer Question 3 Choose the true statements below. A Consolfitrated financial statements combine the separate financial statements of the purchasing company and the acquired company into a single set of financial statements. Parent Company purchased 80% of Subsidiary Company. Parent Company must use the consolidation method to report its B investment in Subsidiary Company. The Consolidated balance of inventory on the Consolidated Balance Sheet will include 100% of Parent Company's inventory and 80% of Subsidiary Company's inventory. GoodTires acquired FairTires on January 1, 2025. FairTires will continue as a separate company in 2025 although it wil be (C) controlled by GoodTires. In 2024, GoodTires reported to the SEC as GoodTires, Inc. In 2025, GoodTires must use the following name to report their financials: GoodTires and FairTires, Consolidated. Pet Supplies, Inc. acquired 100% of Dog Supplies, Inc, on July 1, 2025. At the end of 2025, Pet Supplies prepares its financial D statements. Revenues reported on the December 31, 2025 Statement of Earnings will include revenues of Pet Supplies for 2025 plus revenues of Dog Supplies from the date of acquisition on July 1,2025. Sporting Goods, Inc. purchased 60\% of Fishing Tackle, Inc, on March 1, 2025 for $5 million. Sporting Goods revalued the identifiable assets and liabilities of Fishing Tackle, Inc. and found that the identifiable assets and liabilities of Fishing Tackle, Inc. are worth \$3 million. Goodwill is valued at \$2 million and is included in the December 31, 2025 nonncurrent asset of the consolidated statements