_____ a Valid Reason for Not Consolidating a Subsidiary Is

Multiple Choice

_____ A valid reason for not consolidating a subsidiary is

A) Applicable state law prohibits the subsidiary from making loans to its parent company.
B) The subsidiary's liabilities equal its assets.
C) The subsidiary has a serious cash shortage and will not be able to pay dividends for the foreseeable future.
D) The parent has substantial inventory sales to the subsidiary.
E) None of the above.