On April 1, 2017, Paxton Corporation Acquired All of the Outstanding

Multiple Choice

On April 1, 2017, Paxton Corporation acquired all of the outstanding voting common stock of Stanley Company and Stanley will remain a separate corporation. Stanley's year-end is December 31. How should the assets and liabilities of Stanley be reported on the consolidated financial statements when Stanley is combined with Paxton on April 1, 2017?

A) At book values at the April 1, 2017 date of acquisition.
B) At fair values at the April 1, 2017 date of the acquisition.
C) At book values at December 31, 2016.
D) At fair values at December 31, 2016 less accumulated depreciation calculated on the difference between book and fair values since that date.