On the Date of Acquisition, the Parent's Investment (In Subsidiary

question 24

Multiple Choice

On the date of acquisition, the parent's investment (in subsidiary account) is:

• A)revalued to fair market value.
• B)replaced with 100% of the assets and liabilities of the subsidiary at fair market value.
• C)replaced with 100% of the assets and liabilities of the subsidiary at book value.
• D)replaced with the parent's pro rata share of the assets and liabilities of the subsidiary at book value.

---

Definitions:

Law Book

A publication containing legal rules, regulations, and case law intended to guide lawyers, judges, and scholars in their legal work and studies.

Implied Warranty

An unstated guarantee that goods sold or services provided meet certain quality standards and fit for the purpose intended.

Breach

A violation or infraction of a law, obligation, tie, or standard.

Secured Interest

A legal claim or lien on collateral that has been pledged, often in relation to loans, to secure payment.