The entry to amortize the amount of difference between implied and book value allocated to an unspecified intangible is recorded:
A) on the subsidiary's books.
B) on the parent's books.
C) on the consolidated statements workpaper.
D) on the parent's books and on the consolidated statements workpaper.

Question

Quizplus · Accepted Answer

The entry to amortize the amount of difference between implied and book value allocated to an unspecified intangible is recorded on the consolidated statements workpaper. This is because the amortization of such differences affects the consolidated financial statements rather than the individual books of the parent or subsidiary.

The Entry to Amortize the Amount of Difference Between Implied