Under the Direct Method, What Values Should Be Entered for the Assets

Multiple Choice

Under the direct method, what values should be entered for the assets, liabilities, and shareholders' equity to start the consolidation process?

A) Carrying values for both the parent and the subsidiary companies
B) Carrying values for the parent company and fair values for the subsidiary company
C) Fair values for the parent company and carrying values for the subsidiary company
D) Fair values for both the parent and the subsidiary companies