Sya Ltd. acquired all the assets and liabilities of Littman Ltd. by issuing common shares to Littman. After this transaction, Littman owned 30% of Sya's outstanding shares. Which of the following statements is true?
A)Littman Ltd. ceases to exist.
B)Littman must record its receipt of Sya shares using the equity method.
C)Sya must prepare single-entity and consolidated financial statements.
D)Sya should not treat this transaction as an intercorporate investment.

Question

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The Answer of Sya Ltd. acquired all the assets and liabilities of Littman Ltd. by issuing common shares to Littman. After this transaction, Littman owned 30% of Sya's outstanding shares. Which of the following statements is true?
A)Littman Ltd. ceases to exist.
B)Littman must record its receipt of Sya shares using the equity method.
C)Sya must prepare single-entity and consolidated financial statements.
D)Sya should not treat this transaction as an intercorporate investment.

Sya Ltd Acquired All the Assets and Liabilities of Littman Ltd