When Selling an Investment in a Subsidiary, in Order to Record

Multiple Choice

When selling an investment in a subsidiary, in order to record the appropriate gain or loss:

A) ​the investment must be adjusted to show the balance under the sophisticated equity method.
B) ​the investment must be adjusted to show the balance under the equity method.
C) ​a final consolidation must be prepared.
D) ​the unamortized balances of the excess of the purchase price over the book value of the investment must be written off.