ParentCo acquired SubCo on June 1, 2023. This is the only acquisition that SubCo ever did.

The following is the consolidated income statement of ParentCo for the year ended 12/31/23

Revenue

Cost of sales

Gross Margin

Selling and marketing expenses

Research and Development expenses

General and administrative expenses

Depreciation expense

Amortization expense

Gain (loss) on settlement of litigation

Gain (loss) on contingent purchase price

Pretax income

Income taxes

Net income

The Gain on settlement of litigation was on litigation against the parent rather than against SubCo. Why is this an important fact when evaluating if the income

What does the income statement suggest about how SubCo performed against expectations of ParentCo at the original acquisition date

Based upon the data given, would you expect 2024 REPORTED revenue to increase, decrease or stay the same from 2023 REPORTED amount