Final answer:
The type of business combination that requires the use of a working paper each year to combine the separate accounts of the parent and the subsidiary for presentation in the annual report is the Consolidation combination.
Step-by-step explanation:
Out of the listed options, the type of business combination that requires the use of a working paper each year to combine the separate accounts of the parent and the subsidiary for presentation in the annual report is the Consolidation combination.
In a consolidation combination, the separate financial statements of the parent company and its subsidiaries are combined into a single set of consolidated financial statements. These statements provide a comprehensive view of the financial position and performance of the combined entities.
Working papers are used to support and document the process of consolidating the accounts. These working papers include details such as intercompany transactions, eliminations, and adjustments required to align the accounting policies of the parent and subsidiary.