In a step acquisition, which of the following statements is false?
1.The acquisition method views a step acquisition essentially the same as a single step acquisition.
2.Income from subsidiary is computed by applying a partial year for a new purchase acquired during the year.
3.Pre-acquisition earnings are not included in the consolidated income statement.
4.Income from subsidiary is computed for the entire year for a new purchase acquired during the year.
4.Obtaining control through a step acquisition is a significant