When the Parent Uses the Cost Method, Eliminating Entry (A)

Multiple Choice

When the parent uses the cost method, eliminating entry (A) adjusts the parent's balance sheet accounts to the amounts reported using the complete equity method. Which of the parent's accounts must be adjusted?

A) Identifiable intangibles, goodwill, and investment in subsidiary
B) Goodwill and retained earnings, beginning of year
C) Accumulated other comprehensive income, beginning of year, and investment in subsidiary
D) Investment in subsidiary, and retained earnings and accumulated other comprehensive income, beginning of year