If an investment is owned 100%, which methods will result in the same income and shareholders' equity appearing on the financial statements?
A)Cost and consolidation.
B)Equity and consolidation.
C)Cost and equity.
D)Each method results in different income and shareholder's equity amounts.

Question

Quizplus · Accepted Answer

When an investment is owned 100%, both the equity and consolidation methods will result in the same income and shareholders' equity appearing on the financial statements. This is because both methods fully reflect the financial performance and position of the subsidiary in the parent company's financial statements.

If an Investment Is Owned 100%, Which Methods Will Result