In 2014, Cadence Corp. purchased 100% of the common stock of Tempo Tech for a total purchase price of $6,362 million. On Cadence’s unconsolidated accounts, it uses the equity method to account for Tempo Tech. For public disclosure, Cadence Corp. consolidates the accounts of Tempo Tech. Which of the following is true?
The consolidated shareholders’ equity exceeds the unconsolidated shareholders’ equity by $6,362 million.
The consolidated total assets are greater than the unconsolidated total assets by $6,362 million.
Net income is the same on the consolidated and unconsolidated financial statements.
The consolidated net income is greater than the unconsolidated net income.