When a Subsidiary Is Acquired Sometime After the First Day

question 61

Multiple Choice

When a subsidiary is acquired sometime after the first day of the fiscal year, which of the following statements is true?

• A) Income from subsidiary is not recognized until there is an entire year of consolidated operations.
• B) Income from subsidiary is recognized from date of acquisition to year-end.
• C) Excess cost over acquisition value is recognized at the beginning of the fiscal year.
• D) No goodwill can be recognized.
• E) Income from subsidiary is recognized for the entire year.

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Definitions:

Standard Deviation

A parameter that indicates the level of dispersion or variability within a collection of data points.

Data

Factual information, especially measurements or research results, used as a basis for reasoning, discussion, or calculation.

Standard Deviation

An indicator that quantifies the extent of spread or deviation of a collection of values from their average.

Data

Information collected for reference or analysis, which can be qualitative or quantitative in nature.