Which of the following stockholders' equity accounts are eliminated during the consolidation process?
A)Common Stock of the subsidiary
B)Preferred Stock of the subsidiary
C)Additional Paid-in Capital of the subsidiary
D)All of the choices.

Question

Quizplus · Accepted Answer

During the consolidation process, all stockholders' equity accounts of the subsidiary, including Common Stock, Preferred Stock, and Additional Paid-in Capital, are eliminated. This is because the consolidation process involves combining the financial statements of the parent company and its subsidiary(ies) into a single set of financial statements, and the internal ownership interests (represented by these equity accounts) are eliminated in consolidation.

Which of the Following Stockholders' Equity Accounts Are Eliminated During