When Two Companies Form a Joint Venture and Each Company

question 11

Multiple Choice

When two companies form a joint venture and each company owns exactly 50% of the joint venture

• A)the cost method is used.
• B)the equity method is used and line-by-line consolidation is required.
• C)the equity method is used and line-by-line consolidation is not required.
• D)the company that has more net assets is deemed the parent.