Big buys 100% of Tiny on May 1. The purchase price is greater than the fair value of Tiny’s identifiable net assets. Big’s management is trying to decide whether the financial reports they give to Big’s shareholders will look better if they dissolve Tiny, and merge it into Big, or if they leave Tiny in existence, and prepare consolidated financial statements. Which of the following statements is accurate?

		Goodwill can only be shown as an asset if Tiny remains in existence. It can’t be reported if Tiny is dissolved.
		If Tiny is dissolved, Giant will record all the acquired assets at their old book values. Since these are lower than the fair values at the acquisition date, Giant will record lower depreciation and amortization in the future than if it left Tiny in existence.
		If Tiny is dissolved, Giant will be able to include all of Tiny’s revenues and expenses between January 1 and May 1 in its income statement. Since Tiny was profitable, that will increase Giant’s reported income for the year.
		The consolidated financial statements should have no differences from the statements Giant would prepare if it dissolved Tiny and merged it into Giant.