Fun with Florals Corporation Acquired All the Voting Shares of Crafts

question 27

Multiple Choice

Fun with Florals Corporation acquired all the voting shares of Crafts to Go Corporation under the purchase method.Which of the following statements about the consolidated statements is true?

• A)The assets and liabilities of Crafts to Go Corporation would be not revalued and disclosed at their market values on the date of acquisition.
• B)Fun with Florals will use the equity method of accounting for this investment.
• C)Fun with Florals will report Crafts to Go Corporation's revenues and expenses on a consolidated income statement.
• D)Fun with Florals will use the market value method of accounting for this investment.