New controlled group ADP testing

[Gilmore]

Company X sponsors a 401(k) plan. In 2002 the company's stock is purchased by an individual, Mrs. A, who now becomes the sole owner. Mrs. A's husband also is 100% owner of a similar business, Company Y. Company Y does not sponsor a plan. Company X uses a standardized plan document.

First, does the coverage transition rule apply in this case, and does that mean that for coverage purposes Company Y's employees do not need to be considered for coverage purposes until 2004?

Second, I have always been confused by the fact that the coverage transition rules do not relate to non-discrimination testing. Does this mean that regardless of coverage, the employees of Company Y must be included in the ADP testing for 2002 and 2003 if eligible?

Which brings me to my final question...for plan purposes, is the date of hire for the employees of Company Y their date of hire at Company Y, or the date of the purchase (assuming the document does not allow any predecessor service)?

Really appreciate some help with this one.

Thanks.