Which of the Following Is the Primary Justification for Reporting

question 12

Multiple Choice

Which of the following is the primary justification for reporting the acquisition of a controlling interest on a consolidated basis?

• A) The companies are legally and in economic substance one entity.
• B) The companies are legally separate but they are one entity in economic substance.
• C) The companies are legally one entity but they are separate in economic substance.
• D) The companies are legally and in economic substance separate.