For Each of the Following Situations, Select the Best Answer

question 79

Essay

For each of the following situations, select the best answer that applies to consolidating financial information subsequent to the acquisition date:(A) Initial value method.(B) Partial equity method.(C) Equity method.(D) Initial value method and partial equity method but not equity method.(E) Partial equity method and equity method but not initial value method.(F) Initial value method, partial equity method, and equity method.Method(s) available to the parent for internal record-keeping.Easiest internal record-keeping method to apply.Income of the subsidiary is recorded by the parent when earned.Designed to create a parallel between the parent's investment accounts and changes in the underlying equity of the acquired company.For years subsequent to acquisition, requires the *C entry.Uses the cash basis for income recognition.Investment account remains at initially recorded amount.Dividends received by the parent from the subsidiary reduce the parent's investment account.Often referred to in accounting as a single-line consolidation.Increases the investment account for subsidiary earnings, but does not decrease the subsidiary account for equity adjustments such as amortizations.

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Definitions:

PB1

Often referred to a "Push Button 1," a generic term for a manually activated input device used in various electronic circuits.

PB2

Often refers to a specific pin, connector, or component in electronic devices or circuit boards, but without more context, its specific meaning can vary widely.

PLC

Programmable Logic Controller, a digital computer used for automation of industrial processes, such as control of machinery or factory assembly lines.

Timing Circuit

An electronic circuit designed to produce specific time delays or to trigger events at precise intervals.