Control of a Subsidiary Was Achieved with the Initial Investment

question 37

Multiple Choice

Control of a subsidiary was achieved with the initial investment in subsidiary stock.When a subsequent block of subsidiary's stock is purchased

• A)​the parent must change from the cost method to the equity method.
• B)​the parent must change from the equity method to the cost method.
• C)​no change in accounting methods is required.
• D)​none of the above.