In the Year a Parent Sells Its Entire Subsidiary Investment

question 14

Multiple Choice

In the year a parent sells its entire subsidiary investment, the results of subsidiary operations prior to the sale date are

• A)​consolidated to the point of sale.
• B)​shown on the balance sheet in the stockholders' equity section as an adjustment to retained earnings.
• C)​not reflected on any of the parent's statements.
• D)​not consolidated.