Multiple Choice
Which of the following statements is true regarding the subsidiary's investment in its parent's common stock?
A) All of the parent company's common stock is eliminated.
B) The consolidation worksheet entry to eliminate the subsidiary's investment in parent's common stock is debited to treasury stock.
C) The consolidation worksheet entry to eliminate the subsidiary's investment in parent's common stock is debited to retained earnings.
D) The consolidation worksheet entry to eliminate the subsidiary's investment in parent's common stock is debited to additional paid-in capital.
E) The investment in parent company's common stock is not eliminated in consolidation.
Correct Answer:
Verified
Correct Answer:
Verified
Q53: White Company owns 60% of Cody Company.
Q54: Wilkins Inc. owned 60% of Motumbo Co.
Q55: What method is used in consolidation to
Q56: Paris, Inc. owns 80% of the voting
Q57: Delta Corporation owns 90% of Sigma Company,
Q59: What term is used to describe a
Q60: C Co. currently owns 80% of D
Q61: Which of the following is true concerning
Q62: Delta Corporation owns 90% of Sigma Company,
Q63: On January 1, 2021, a subsidiary buys