In a Business Combination Resulting in a Parent Company-Subsidiary Relationship

Multiple Choice

In a business combination resulting in a parent company-subsidiary relationship, the parent company's Investment in Subsidiary Common Stock ledger account balance is:

A) Allocated to individual asset and liability ledger accounts in a parent company journal entry
B) Eliminated with a working paper elimination for the working paper for consolidated balance sheet
C) Displayed among noncurrent assets in the consolidated balance sheet
D) Used as a basis for adjusting the subsidiary's asset and liability account balances in the subsidiary's ledger to current fair values