In the Year a Parent Sells Its Subsidiary Investment, the Results

question 15

Multiple Choice

In the year a parent sells its subsidiary investment, the results of subsidiary operations prior to the sale date are

• A) consolidated to the point of sale.
• B) shown on the balance sheet in the stockholders' equity section as an adjustment to retained earnings.
• C) not reflected on any of the parent's statements.
• D) not consolidated.

---

Definitions:

Equal Treatment

The principle that all individuals must be treated with the same respect and fairness, especially under the law, without discrimination.

Concept of Liberty

A political philosophy principle that emphasizes individual freedom and the right to live one’s life without undue government interference.

Pluralist Democratic Model

A theory of democracy that emphasizes the role of diverse and competing interest groups in shaping public policy.

Button To Nowhere

A non-functional or decorative button that does not lead to any action or result when engaged.