Fun with Florals Corporation Acquired All the Voting Common Stock

Multiple Choice

Fun with Florals Corporation acquired all the voting common stock shares of Crafts-to-Go Corporation under the acquisition method.Crafts-to-Go remains a separate corporation.Which of the following statements about the financial statements is true?

A) The assets and liabilities of Crafts-to-Go Corporation would be not revalued and disclosed at fair value on the date of acquisition.
B) Fun with Florals will use the equity method of accounting for this investment.
C) Fun with Florals will prepare consolidated financial statements.
D) Fun with Florals will use the fair value method of accounting for this investment.