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.

Question

Quizplus · Accepted Answer

The Answer of 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.

Consolidated Net Income Using the Equity Method for an Acquisition