How Are Accounts Involving More Than One Subsidiary Consolidated

question 1

Multiple Choice

How are accounts involving more than one subsidiary consolidated?

• A)Sequentially for each company,calculate the goodwill,revalue the net assets,then consolidate the accounts.
• B)Sequentially for each company,calculate the goodwill,then consolidate the accounts.
• C)Sequentially for each company,revalue the assets of the subsidiary to fair value then consolidate the accounts.
• D)Sequentially for each company,add the total assets of the combination and then the liabilities then calculate the goodwill.

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Definitions:

Losing Value

A decrease in the worth or market value of an asset over time.