When Preparing the Consolidated Balance Sheet on the Date of Acquisition

Multiple Choice

When preparing the consolidated balance sheet on the date of acquisition, the parent's investment (in subsidiary company) is:

A) revalued to fair market value.
B) replaced with 100% of the assets and liabilities of the subsidiary at fair market value.
C) replaced with 100% of the assets and liabilities of the subsidiary at book value.
D) replaced with the parent's pro rata share of the assets and liabilities of the subsidiary at fair market value.