All of the following statements regarding the sale of subsidiary shares are true except which of the following?
A) The use of specific identification based on serial number is acceptable.
B) The use of the FIFO assumption is acceptable.
C) The use of the averaging assumption is acceptable.
D) The use of specific LIFO assumption is acceptable.
E) The parent company must determine whether consolidation is still appropriate for the remaining shares owned.

Question

Quizplus · Accepted Answer

The use of specific LIFO assumption is generally not acceptable for the sale of subsidiary shares, as it is not a common method for accounting for investments in subsidiaries.

All of the Following Statements Regarding the Sale of Subsidiary