At the Date of Acquisition by a Parent Company,the Fair

question 94

Multiple Choice

At the date of acquisition by a parent company,the fair value of a subsidiary's fixed assets were larger than their book value.When preparing consolidated financial statements,the fixed assets of the subsidiary are ________ and depreciation expense is ________.

• A)decreased to fair value; decreased
• B)increased to fair value; increased
• C)not adjusted; not adjusted
• D)increased to fair value; not adjusted

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Definitions:

Pre-Conventional Stage

A level in Kohlberg's theory of moral development where an individual's sense of morality is externally controlled and rules are obeyed to avoid punishment.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Territories

Geographically defined areas or domains, often used to assign sales regions or political boundaries.

Earnings of Salespeople

The compensation received by sales professionals, often comprising a base salary, commissions, and possibly bonuses based on performance.