When Selling an Investment in a Subsidiary, in Order to Record

question 26

Multiple Choice

When selling an investment in a subsidiary, in order to record the appropriate gain or loss:

• A)​the investment must be adjusted to show the balance under the sophisticated equity method.
• B)​the investment must be adjusted to show the balance under the equity method.
• C)​a final consolidation must be prepared.
• D)​the unamortized balances of the excess of the purchase price over the book value of the investment must be written off.

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