On 1/1/2020, P Inc.acquired all of S Inc.s common shares for cash equal to the

stocks book value.The book value amounts of S assets and liabilities approximated their fair values, except that its building book value was more than fair values,In preparing P 2020 consolidated income statement

which of the following adjustments would be made?

Select one:

a. Increase depreciation expense

b. no entry

c. adjustments for gain

d. Decrease depreciation expense

In the cost method of acquisition income is recognized only when the subsidiary declares dividends

Select one: True False

All the financial statements is consolidated on the date of a business combination of a parent company and subsidiary

Select one: True False