King Company acquired 80,000 of the 100,000 outstanding common shares of Jack Company on January 1, 2020. Queen Company holds 15% of Jack Companys bonds payable, debt with a maturity date of June 30, 2028. The other 85% of Jack Companys bonds payable are owned by various companies and individuals (not King Co.). King Companys fiscal year-end is January 31, and Jack Companys fiscal year- end is December 31.

How should King Company handle Jack Companys different fiscal year when preparing consolidated financial statements? King may:

A. Use the information from Jack Company for the year ended December 31, and disclose any material events that impacted the consolidated balance sheet and/or income statement between consolidated year end (1/31) and subsidiary year end (12/31).

B. Ask Jack to prepare financial statements for the year ending January 31 to correspond with King Companys fiscal year-end.

C. Either A or B above.

D. Neither A nor B above.

PLEASE INDICATE WHAT PART OF FASB CODIFICATION YOU ARE USING AS SUPPORT EX. FASB XX-XX-XX-XX NOTE XX