Multiple Choice
On October 1, 2006, Poon Corporation acquired for cash all the outstanding common stock of Soong Company, which was not liquidated. Consolidated net income for the fiscal year ended December 31, 2006, includes net income of:
A) Poon for three months and Soong for three months
B) Poon for twelve months and Soong for three months
C) Poon for twelve months and Soong for twelve months
D) Poon for twelve months, but no income from Soong until it declares a cash dividend
Correct Answer:
Verified
Correct Answer:
Verified
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