The SEC Requires the Use of Push-Down Accounting in Some

Multiple Choice

The SEC requires the use of push-down accounting in some specific situations.Push-down accounting results in:

A) ​goodwill be recorded in the parent company separate accounts.
B) ​eliminating subsidiary retained earnings and paid-in capital in excess of par.
C) ​reflecting fair values on the subsidiary's separate accounts.
D) ​changing the consolidation worksheet procedure because no adjustment is necessary to eliminate the investment in subsidiary account.