Which of the following material events occurring subsequent to the december 31, year 1, balance sheet date will not ordinarily result in an adjustment of the financial statements before they are issued on march 2, year2?

Acquisition of a subsidiary on January 23, Year 2. Negotiations had begun in December of Year 1.

Explanation:

An entity acknowledges events that occurred in the financial reports which provide data on conditions that exist at the income statement date, including calculations that are inherent in the preparation of the statement.

The holding company's sale did not take place until the end of the year.

Therefore, the transaction only included disclosure of the note, not acknowledgement in the statements.