In the year a parent sells its entire subsidiary investment, the results of subsidiary operations prior to the sale date are
A)consolidated to the point of sale.
B)shown on the balance sheet in the stockholders' equity section as an adjustment to retained earnings.
C)not reflected on any of the parent's statements.
D)not consolidated.

Question

In the year a parent sells its entire subsidiary investment, the results of subsidiary operations prior to the sale date are
A)​consolidated to the point of sale.
B)​shown on the balance sheet in the stockholders' equity section as an adjustment to retained earnings.
C)​not reflected on any of the parent's statements.
D)​not consolidated.

Quizplus · Accepted Answer

The Answer of In the year a parent sells its entire subsidiary investment, the results of subsidiary operations prior to the sale date are
A)​consolidated to the point of sale.
B)​shown on the balance sheet in the stockholders' equity section as an adjustment to retained earnings.
C)​not reflected on any of the parent's statements.
D)​not consolidated.

In the Year a Parent Sells Its Entire Subsidiary Investment