If a Parent Company Owns 80% of a Subsidiary Company

question 55

Multiple Choice

If a parent company owns 80% of a subsidiary company, which of the following best describes how the assets and liabilities of the combined entity are valued on the consolidated financial statements?

• A)All at fair value.
• B)All at historical cost.
• C)The parent at its book value and the subsidiary at its fair value.
• D)The parent at its book value and the subsidiary's at a combination of historical cost and book value.

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Definitions:

Timely Decisions

Timely decisions are those made within an appropriate and strategic timeframe that allows for effective action and positive outcomes in project management or operations.

Project Celebration

An event or gathering organized to acknowledge the successful completion of a project and to celebrate the team's efforts.

Time Elapsed

Time elapsed is the total amount of time that has passed from the start of an event or activity to a particular point or its completion.

Dealing Fairly

Dealing fairly means engaging in practices that are just, equitable, and transparent in all business and personal transactions.