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Assume That Parent Inc

Question 54

Multiple Choice

Assume that Parent Inc. purchased a controlling interest in Sub Inc. on August 1, 2018 and decides to prepare an Income Statement for the combined entity on the date of acquisition. If Parent acquired 100% of Sub Inc. on that date, what would be the net income reported for the combined entity (for the year ended July 31, 2018) ?


A) $60,000
B) $120,000
C) $180,000
D) Nil

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