P, Q, and R are children of a mid-level parent entity, AceCo. In February each entity has cash in the amounts of 10, 20, and 30, respectively, and AceCo has been consolidated and has cash of 60. A prior period adjustment to Q adjusts cash with a debit of 5.
Which statement regarding consolidation is correct?

• A.January and February should be consolidated.
• B.January should be consolidated for the change and nothing needs to happen for February.
• C.February should be consolidated, after which the cash at AceCo is now 65.
• D.There is no way to do a prior period entry like this.

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