Company a Acquired 100 Percent of the Outstanding Common Stock

Multiple Choice

Company A acquired 100 percent of the outstanding common stock of Company B.At the date of acquisition,no goodwill was involved and the book value of the assets and liabilities of Company B equal their fair values.Immediately after the acquisition,an elimination entry is prepared in order to prepare consolidated financial statements.What accounts are affected by the elimination entry?

A) Investment in Company B only
B) Stockholders' Equity of Company B only
C) Fixed Assets of Company B only
D) Investment in Company B and Stockholders' Equity of Company B