Which of the following statements does not properly describe the accounting for business combinations? Multiple Choice

The parent company has the option of choosing either the purchase method or the acquisition method to account for the business combination.

Under the purchase method, the subsidiarys assets and liabilities are not valued at their full fair values on the consolidated balance sheet when noncontrolling interests are present.

The noncontrolling interest is reported as a component of stockholders equity when using the acquisition method.

Under the acquisition method, the subsidiarys assets and liabilities are valued at their full fair values on the consolidated balance sheet when noncontrolling interests are present.