Question

During 2005, eBay acquired 100% of four different companies as follows (assume all companies have a December 31 year-end). Net income amounts are stated in thousands of dollars; assume that the net income is earned uniformly throughout the year 2005.



Required:
A. How much of the income earned by each of these companies will be recorded in consolidated net income in the year of acquisition?
B. In addition to reported earnings for the year of acquisition, GAAP requires certain proforma earnings disclosures for the consolidated entity. What amount of earnings fromeach of these acquisitions would be included in proforma earningsdisclosures?


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  • CreatedMarch 13, 2015
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