On the Date of a Business Combination Resulting in a Parent-Subsidiary

Multiple Choice

On the date of a business combination resulting in a parent-subsidiary relationship, the differences between current fair values and carrying amounts of the subsidiary's identifiable net assets are:

A) Included in a working paper elimination
B) Recognized in the applicable asset and liability ledger accounts of the subsidiary
C) Recognized in the applicable asset and liability ledger accounts of the parent company
D) Accounted for in some other manner