Racer Corp

question 19

Multiple Choice

Racer Corp.purchased all of the common stock of Tangiers Co.several years ago.Tangiers maintained its incorporation.Balances in which of Racer's accounts would vary between the equity method and the initial value method?

• A)Goodwill,Investment in Tangiers Co. ,and Retained Earnings.
• B)Expenses,Investment in Tangiers Co. ,and Equity in Subsidiary Earnings.
• C)Investment in Tangiers Co. ,Equity in Subsidiary Earnings,and Retained Earnings.
• D)Common Stock,Goodwill,and Investment in Tangiers Co.
• E)Expenses,Goodwill,and Investment in Tangiers Co.

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