When Preparing a Consolidation Worksheet for a Parent and Its

question 40

Multiple Choice

When preparing a consolidation worksheet for a parent and its foreign subsidiary accounted for under the equity method, which of the following statements is false?

• A) The cumulative translation adjustment included in the Investment in Subsidiary account is eliminated.
• B) The excess of fair value over book value since the date of acquisition is revalued for the change in exchange rate.
• C) The amount of equity income recognized by the parent in the current year is eliminated.
• D) The allocations of excess of fair value over book value at the date of acquisition are eliminated.
• E) The subsidiary's stockholders' equity accounts as of the beginning of the year are eliminated.

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Definitions:

High-Fowler's Position

A sitting position with the back at a 60-90 degree angle, used to facilitate breathing and for various medical purposes.

Low-Fowler's Position

A semi-upright sitting position where the head and torso are elevated at a lower angle (15 to 30 degrees), often used to promote comfort and respiratory function in patients.

Quad-cane

A type of walking aid with four small feet that provides greater stability than a standard single-point cane.

Ambulation

The act of walking or moving from one place to another, often used in medical contexts to describe a patient’s ability to move independently.