An 80% owned subsidiary is not consolidated because control has been lost. The cost method cannot be used to account for the investment in the subsidiary.

Name: An 80% owned subsidiary is not consolidated because control has been lost. The cost method cannot be used to account for the investment in the subsidiary.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Even if control is lost, the cost method can still be used to account for the investment in the subsidiary, especially if the equity method or consolidation is not appropriate or possible.

An 80% Owned Subsidiary Is Not Consolidated Because Control Has