At the Date of Acquisition by a Parent Company,the Fair

Multiple Choice

At the date of acquisition by a parent company,the fair value of a subsidiary's fixed assets was larger than their book value.When preparing consolidated financial statements,the fixed assets of the subsidiary are ________ and depreciation expense is ________.

A) decreased to fair value; decreased
B) increased to fair value; increased
C) not adjusted; not adjusted
D) increased to fair value; not adjusted