The assets of a subsidiary are depreciated and amortized over their remaining useful lives as a part of the consolidation process.

Question

Quizplus · Accepted Answer

This statement is true. When a parent company consolidates the financial statements of a subsidiary, the assets of the subsidiary are included and their respective depreciation and amortization expenses are recorded based on their remaining useful lives.

The Assets of a Subsidiary Are Depreciated and Amortized Over