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Question
Assuming that both the acquiring and target firms have fiscal years ending on December 31, if the target is acquired on December 1, 2015, which of the following is the most accurate?
a) Revenues of the target would be consolidated from 2016 onward.
b) Revenues of the target would be consolidated 100 percent for 20
c) Revenues of the target would be consolidated post-acquisition—that is, one month of revenues of the target for 20
d) No consolidation of revenues will happen.
Answer
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