Which of the Following Adjustments (If Any) to Retained Earnings

Multiple Choice

Which of the following adjustments (if any) to Retained Earnings is necessary for the preparation of the Consolidated Balance Sheet?

A) Under both the Cost and Equity methods, the parent must record its share of its
Subsidiary's income.
B) Under both the Cost and Equity methods, the parent must record its share of its
Subsidiary's income less any dividends received from the subsidiary.
C) No adjustment is required under either the Cost or the Equity methods.
D) No adjustment is required if the parent has been using the Equity Method.