How should the assets and liabilities of Stanley be reported on the consolidated financial statements when Stanley is combined with Paxton on April 1, 2015

At fair values at the April 1, 2015 date of the acquisition.

Explanation:

Note: The full question is attached below for understanding

As Paxton Corporation acquired all of the outstanding voting common stock of Stanley Company and Stanley will remain a separate corporation. Stanley's year-end is December 31. The acquired net assets should be reported based on when Stanley is combined with Paxton on April 1, 2015 at fair values at the April 1, 2015 date of the acquisition.

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