When consolidating a subsidiary that was acquired on a date other than the first day of the fiscal year, which of the following statements is true in the presentation of consolidated financial statements?
A) Preacquisition earnings are deducted from consolidated revenues and expenses.
B) Preacquisition earnings are added to consolidated revenues and expenses.
C) Preacquisition earnings are deducted from the beginning consolidated stockholders' equity.
D) Preacquisition earnings are added to the beginning consolidated stockholders' equity.
E) Preacquisition earnings are ignored in the consolidated income statement.

Question

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The Answer of When consolidating a subsidiary that was acquired on a date other than the first day of the fiscal year, which of the following statements is true in the presentation of consolidated financial statements?
A) Preacquisition earnings are deducted from consolidated revenues and expenses.
B) Preacquisition earnings are added to consolidated revenues and expenses.
C) Preacquisition earnings are deducted from the beginning consolidated stockholders' equity.
D) Preacquisition earnings are added to the beginning consolidated stockholders' equity.
E) Preacquisition earnings are ignored in the consolidated income statement.

When Consolidating a Subsidiary That Was Acquired on a Date