At Acquisition Date a Wholly Owned Subsidiary Had the Following

question 2

Multiple Choice

At acquisition date a wholly owned subsidiary had the following equity items:
-Retained earnings $14 000
-Share capital $30 000
-Business combination revaluation reserve $6000
In the year following the acquisition the subsidiary transferred $10 000 from pre-acquisition retained earnings,to a general reserve account.At the reporting date following the reserve transfer,the following consolidation adjustment is needed:

• A)DR Retained earnings $10 000 CR General reserve $10 000
• B)DR General reserve $10 000 CR Shares in subsidiary $10 000
• C)DR Shares in subsidiary $10 000 CR Retained earnings $10 000
• D)DR General reserve $10 000 CR Retained earnings $10 000.

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Definitions:

Ego Integrity

The final stage in Erik Erikson's theory of psychosocial development where the adult reflects on their life and either achieves a sense of fulfillment or experiences despair.

Despair

A profound feeling of hopelessness, typically associated with major depressive episodes or significant life losses.

Physical Decline

The gradual loss of physical abilities and functions as part of the aging process.

Ego Differentiation

A process in psychological development where an individual's self-worth becomes less tied to their professional role or work performance.