When a Company Applies the Partial Equity Method in Accounting $\quad$

Multiple Choice

When a company applies the partial equity method in accounting for its investment in a subsidiary and initial value, book values, and fair values of net assets acquired are all equal, what consolidation worksheet entry would be made?
A. Retained earnings
$\quad$ Investment in subsidiary
B. Investment in subsidiary
$\quad$ Retained earnings
C. Investment in subsidiary
$\quad$ Equity in subsidiary's income
D. Investment in subsidiary
$\quad$ Additional paid-in capital
.E No entry is necessary.

A) A above
B) B above
C) C above
D) D above
E) E above