When a Parent Company Owns 100 Percent of the Outstanding

question 166

Multiple Choice

When a parent company owns 100 percent of the outstanding stock of a subsidiary,Goodwill from Consolidation will appear on the consolidated balance sheet when the

• A) cost of the parent's investment exceeds the book value and the fair value of the investee's net identifiable assets.
• B) cost of the parent's investment exceeds the book value of the parent's net assets.
• C) book value of the parent's net assets exceeds the fair value of the parent's net assets.
• D) fair value of the investee's net identifiable assets exceeds the cost of the parent's investment.

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Definitions:

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