Under the Parent Company Theory,which of the Following Pertaining to Consolidated

question 17

Multiple Choice

Under the Parent Company Theory,which of the following pertaining to Consolidated Financial Statements is correct?

• A)The Consolidated Balance Sheet is prepared by adding the book values of both the Parent and its subsidiary.
• B)The Consolidated Balance Sheet is prepared by adding the book values of both the Parent and its subsidiary as well as the Parent's share of any acquisition differentials.
• C)The Consolidated Balance Sheet is prepared by adding the fair market values of both the Parent and its subsidiary as well as the parent's share of any acquisition differentials.
• D)The Consolidated Balance Sheet is prepared by adding together the fair market values of both the parent and its subsidiary.