When consolidating a subsidiary that was acquired on a date other than the first day of the fiscal year, which of the following statements is true in the presentation of consolidated financial statements?
A. Purchased pre-acquisition earnings of the subsidiary are excluded from consolidated earnings
B. Purchased pre-acquisition revenues and expenses are included with combined revenues and expenses
C. Purchased pre-acquisition earnings are deducted from the beginning consolidated stockholders' equity
D. Purchased pre-acquisition earnings are added to the beginning consolidated stockholders' equity
E. Purchased pre-acquisition earnings are reported separately on the consolidated income statement