On October 1, Company X Acquired for Cash All of the Outstanding

Multiple Choice

On October 1, Company X acquired for cash all of the outstanding common stock of Company Y. Both companies have a December 31 year-end and have been in business for many years. Consolidated net income for the year ended December 31 should include net income of

A) Company X for3 months and Company Y for 3 months
B) Company X for 12 months and Company Y for 3 months
C) Company X for 12 months and Company Y for 12 months
D) Company X for 12 months, but no income from Company Y until Company Y distributed a dividend