What values should be used for the assets, liabilities, and shareholders' equity to start the consolidation process?
A)Carrying values for the parent company and fair values for the subsidiary company.
B)Fair values for the parent company and carrying values for the subsidiary company.
C)Carrying values for both the parent and the subsidiary companies.
D)Fair values for both the parent and the subsidiary companies.

Question

Quizplus · Accepted Answer

Carrying values are used for both the parent and the subsidiary companies because they represent the historical cost of the assets and liabilities.

What Values Should Be Used for the Assets, Liabilities, and Shareholders