Which of the following observations is NOT consistent with the use of push-down accounting?
A)The revaluation capital account is part of the subsidiary's stockholders' equity.
B)No differential arises in the consolidation process.
C)Revaluation Capital account is eliminated in preparing consolidated statements.
D)Eliminating entries related to the differential are needed in the workpapers.

Question

Quizplus · Accepted Answer

Push-down accounting eliminates the need for differential-related eliminating entries in the consolidation process, as the subsidiary's financial statements already reflect the revalued amounts.

Which of the Following Observations Is NOT Consistent with the Use