One company acquires another company in a combination accounted for under the

acquisition method. The acquiring company decides to apply the

equity method in

accounting for the combination. What is one reason the acquiring company might have made

this decision?

A$)$ It is the only method allowed by the SEC.

B$)$ It is relatively easy to apply.

C$)$ It is the only internal reporting method allowed by generally accepted accounting

principles.

D$)$ Operating results on the parent's financial records reflect consolidated totals.

E$)$ When the equity method is used, no worksheet entries are required in the

consolidation process.