ACC-690

Module 6-2

Quiz

Question 14

Consolidated net incom using the equity method for an acquisition combination is computed as follows:

0 Combined revenues less combined expenses less equity in subsidiary's income less amortization of fair value allocations in excess of book value.

0 Parent's company's income from its own operations plus the equity from subsidairy's income recorded by the parent.

0 Parent's reported net income

0 All of the above

0 parent's revenues less revenues for its own operations plus the equity from subsidairy's income recorded by parent.