When selling an investment in a subsidiary, in order to record the appropriate gain or loss:
A)the investment must be adjusted to show the balance under the sophisticated equity method.
B)the investment must be adjusted to show the balance under the equity method.
C)a final consolidation must be prepared.
D)the unamortized balances of the excess of the purchase price over the book value of the investment must be written off.

Question

When selling an investment in a subsidiary, in order to record the appropriate gain or loss:
A)​the investment must be adjusted to show the balance under the sophisticated equity method.
B)​the investment must be adjusted to show the balance under the equity method.
C)​a final consolidation must be prepared.
D)​the unamortized balances of the excess of the purchase price over the book value of the investment must be written off.

Quizplus · Accepted Answer

The Answer of When selling an investment in a subsidiary, in order to record the appropriate gain or loss:
A)​the investment must be adjusted to show the balance under the sophisticated equity method.
B)​the investment must be adjusted to show the balance under the equity method.
C)​a final consolidation must be prepared.
D)​the unamortized balances of the excess of the purchase price over the book value of the investment must be written off.

When Selling an Investment in a Subsidiary, in Order to Record