When a Company Applies the Partial Equity Method in Accounting

question 64

Multiple Choice

When a company applies the partial equity method in accounting for its investment in a subsidiary and the subsidiary's equipment has a fair value greater than its book value, what consolidation worksheet entry is made in a year subsequent to the initial acquisition of the subsidiary?

---

Definitions:

Contractual Arrangement

An agreement between entities to do or not do specific things, legally binding and enforceable.

Forward Integration

A business strategy where a company gains ownership or increased control over its distributors or retailers.

Apple

A leading technology company known for its innovation in consumer electronics, software, and services.

Apple Retail Stores

Retail locations operated by Apple Inc., focused on selling and supporting Apple products, offering a unique shopping experience.