How do you model a stub period in the combined income statement when the target is acquired mid-year?

For reported GAAP, consolidate the target only from the acquisition date. For pro-forma analysis, show the combined company as if the deal closed at the beginning of the period, then separately disclose stub-period mechanics. In A/D, year-1 target contribution is prorated from closing date, while financing costs also start at closing. Synergy phasing must match the stub period.