Consolidated Net Income Using the Equity Method for an Acquisition

question 55

Multiple Choice

Consolidated net income using the equity method for an acquisition combination is computed as follows:

• A) Parent company's income from its own operations plus the equity from subsidiary's income recorded by the parent.
• B) Parent's reported net income.
• C) Combined revenues less combined expenses less equity in subsidiary's income less amortization of fair-value allocations in excess of book value.
• D) Parent's revenues less expenses for its own operations plus the equity from subsidiary's income recorded by parent.
• E) All of the above.

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