The preparation of consolidated statements likely will require the following inf

Question

The preparation of consolidated statements likely will require the following information about the subsidiary's assets and liabilitie at the date of acquisition: Bool value Fair value Yes No No Yes No No Yes Yes Penn, Inc., a manufacturing company, own. 75% of the common stock of sell, Inc., an investment company. Sell owns 60% of Iha common stock of vane, Inc., an insurance company. In Penn's consolidated financial statements, should consolidation accounting or equity method accounting be used for Sell and Vane? Consolidation used for Sell and equity method used for Vane. Consolidation used for both Sell and Vane Equity method used for Sell and consolidation used for Vane. Equity method used for both Sell and Vane. Under GAAP, which of the following can be issued as the primary form of public financial statement disclosure for a parent and its subsidiaries? Parent only Statement Separate Parent and Subsidiary Statements Consolidated Statements Yes Yes Yes Yes No No No Yes Yes No No Yes A parent company may use which of the following methods to carry an investment in its subsidiary on the parent's books? Cost Method Equity Method No No Yes No No yes Yes yes

Explanation / Answer

The preparation of consolidated statement likely will require the Book value and the fair value of the subsidiary's assets and liabilities.

So the correct answer is "D"

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