When Preparing a Set of Consolidated Financial Statements, the Pre-Acquisition

Multiple Choice

When preparing a set of consolidated financial statements, the pre-acquisition entry relates to:

A) both the parent and the non-controlling interest in the subsidiary.
B) only the investment by the non-controlling interest in the subsidiary.
C) only the investment by the parent in the subsidiary.
D) the total investment by the parent in the subsidiary plus the after-tax effect of the investment by the non-controlling interest.