At the Time of Acquisition, ABC's 2006 Net Income Will

question 101

Multiple Choice

At the time of acquisition, ABC's 2006 net income will increase by: $$\begin{array} { | r | r | r | } \hline & \text { Pooling-of-Interest } & \text { Purchase } \\\hline \text { A) } & \$ 0 & \$ 0 \\\hline \text { B) } & \$ 2 \mathrm { M } & \$ 0 \\\hline \text { C) } & \$ 1.6 \mathrm { M } & \$ 1.4 \mathrm { M } \\\hline \text { D) } & \$ 2 \mathrm { M } & \$ 2 \mathrm { M } \\\hline\end{array}$$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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