What account balances in the subsidiary stockholders' equity accounts should be eliminated in preparing a consolidated balance sheet?
A)Common stock
B)Additional paid-in capital
C)Retained Earnings
D)All of these account balances are eliminated

Question

Quizplus · Accepted Answer

In preparing a consolidated balance sheet, all account balances in the subsidiary stockholders' equity accounts should be eliminated, including common stock, additional paid-in capital, and retained earnings. This is because only the parent company's equity accounts should be presented on the consolidated balance sheet, with any subsidiary equity accounts being reflected as noncontrolling interests.

What Account Balances in the Subsidiary Stockholders' Equity Accounts Should