Push-Down Accounting

question 2

Multiple Choice

Push-down accounting

• A)requires a subsidiary to use the same accounting principles as its parent company.
• B)is required when the parent company uses the equity method to account for its investment in a subsidiary.
• C)is required when the parent company uses the cost method to account for its investment in a subsidiary.
• D)requires the subsidiary to record the subsidiary's assets and liabilities at fair value at the acquisition date.

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