What is the primary difference between: (i) accounting for a business combination when the subsidiary is dissolved; and (ii) accounting for a business combination when the subsidiary retains its incorporation?

Multiple Choice

• If the subsidiary is dissolved, it will not be operated as a separate division.
• If the subsidiary is dissolved, assets and liabilities are consolidated at their book values.
• If the subsidiary retains its incorporation, there will be no goodwill associated with the acquisition.
• If the subsidiary retains its incorporation, assets and liabilities are consolidated at their book values.
• If the subsidiary retains its incorporation, the consolidation is not formally recorded in the accounting records of the acquiring company.