When a Company Applies the Initial Value Method in Accounting

Multiple Choice

When a company applies the initial value method in accounting for its investment in a subsidiary, and the subsidiary reports income in excess of dividends paid, what entry would be made to convert to full-accrual totals in a consolidation worksheet for the second year?

A) A above.
B) B above.
C) C above.
D) D above.
E) E above.