If Push Company owned 51 percent of the outstanding common stock of Shove Company,which method would be appropriate for financial reporting purposes?
A)Cost method
B)Full consolidation method
C)Equity method
D)Fair value method

Question

Quizplus · Accepted Answer

The full consolidation method would be appropriate in this situation, as Push Company owns a majority (51%) of the outstanding common stock of Shove Company. This method involves combining the financial statements of both companies as if they were one entity.

If Push Company Owned 51 Percent of the Outstanding Common