Consolidated financial statements are typically prepared when one company has

Dividend income from another company.

Significant influence over the operating and financial policies of another company.

Accounted for its investment in another company by the equity method.

Control over another company.

According to the acquisition method of accounting for business combinations, costs paid to attorneys and accountants for services in arranging

a merger should be

Capitalized as part of the overall fair value acquired in the merger.

Recorded as an expense in the period the merger takes place.

Included in recognized goodwill.

Written off over a five$-$year maximum useful life.