_____ What Would Be the Effect on Parent-Company-Only Financial Statements-Not

Multiple Choice

_____ What would be the effect on parent-company-only financial statements-not the consolidated statements-if an unconsolidated subsidiary is accounted for under the cost method?

A) All of the unconsolidated subsidiary's accounts will be included individually in the parent company's statements.
B) The retained earnings in the parent company's statements will reflect the earnings of the unconsolidated subsidiary.
C) Dividend income from the unconsolidated subsidiary will be reported in the parent company's income statement.
D) The parent company's retained earnings will be the same as if the subsidiary had been consolidated.
E) None of the above.