When a Company Applies the Partial Equity Method in Accounting

question 40

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?

• A) Retained earnings
• Investment in subsidiary
• B) Investrnent in subsidiary
• Retained earnings
• C) Investment in subsidiary
• Equity in subsidiary's incoms
• D) Investment in subsidiary
• Additional paid-in capital
• E) Retained earnings
• Adritional paid-in capital

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Definitions:

Acute Stress

A short-term physiological response to an immediate perceived threat, stressor or challenge.

Somatic Symptom

Physical symptoms that are potent enough to cause significant distress and may not have a discernible medical cause, often linked to psychological factors.

Adolescents

Individuals in the transitional stage of physical and psychological development that typically occurs during the period from puberty to legal adulthood.

Middle-Aged Adults

Middle-Aged Adults typically refers to individuals who are in the age range of approximately 45 to 65 years, often experiencing shifts in physical health, cognitive function, and social roles.