LU Ltd. purchased the outstanding common shares of MU Inc. as follows:
10%, January 2, 2022
25%, June 1, 2022
25%, August 1, 2022
40%, September 30, 2022
The fiscal year of each company ends on September 30. LU acquired MU’s shares at book value. Which of the following earnings of the subsidiary would be included in LU's consolidated net income for the fiscal year ended September 30, 2022?
Multiple Choice
100% of earnings, August 1 to September 30, 2022
10% of earnings, January 2 to May 31, 2022
60% of earnings, August 1 to September 30, 2022
35% of earnings, January 2 to July 31, 2022