ABC Company acquired 85% of DEF Company on April 1. On its December 31, consolidated income statement, how should ABC account for DEF Company’s revenues and expenses that occurred before April 1 A. Include 100% of DEF’s revenues and expenses and deduct the pre-acquisition portion as non-controlling interest in net income. B. Deduct 15% of the net combined revenues and expenses relating to the pre-acquisition period from consolidated net income. C. Exclude 100% of the pre-acquisition revenues and 100% of the pre-acquisition expenses D. Exclude 15% of the pre-acquisition revenues and 15% of the pre-acquisition expenses from consolidated expenses.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ABC Company acquired 85% of DEF Company on April 1. On its December 31, consolidated income statement, how should ABC account for DEF Company’s revenues and expenses that occurred before April 1
A. Include 100% of DEF’s revenues and expenses and deduct the pre-acquisition portion as non-controlling interest in net income.
B. Deduct 15% of the net combined revenues and expenses relating to the pre-acquisition period from consolidated net income.
C. Exclude 100% of the pre-acquisition revenues and 100% of the pre-acquisition expenses
D. Exclude 15% of the pre-acquisition revenues and 15% of the pre-acquisition expenses from consolidated expenses.

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