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Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2021. To obtain these shares, Flynn pays 5400 cash (in

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Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2021. To obtain these shares, Flynn pays 5400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on that date. Fynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was poid by Flynn in stock issuance costs. The book values for both Flynn and Macek immediately preceding the acquisition follow. The fair value of each of Flynn and Macek accounts is also included. In addition, Macek hoids a futly amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands. Which of the following is true regarding the FASB Accounting Standards Update No, 2014-17, Business Combinations: Pusholown Accounting? It prohibits the use of pushdown accounting in business combinations. It requires the use of pushdown accounting in a business combination only when the parent acquires 100% of a subsidiary's outstanding stock. It prohibits the use of pushdown accounting in a business combination only when the parent acquires 100% of a subsidiary's outstanding stock. It provides an option to use pushdown accounting in a business combination. It requires the use of pushdown accounting in all business combinations

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