Control of a subsidiary was achieved with the initial investment in subsidiary stock.When a subsequent block of subsidiary's stock is purchased
A)the parent must change from the cost method to the equity method.
B)the parent must change from the equity method to the cost method.
C)no change in accounting methods is required.
D)none of the above.

Question

Control of a subsidiary was achieved with the initial investment in subsidiary stock.When a subsequent block of subsidiary's stock is purchased
A)​the parent must change from the cost method to the equity method.
B)​the parent must change from the equity method to the cost method.
C)​no change in accounting methods is required.
D)​none of the above.

Quizplus · Accepted Answer

The Answer is C

Control of a Subsidiary Was Achieved with the Initial Investment