When a company applies the initial value method in accounting for its investment in a subsidiary, and the subsidiary reports income in excess of dividends paid, what entry would be made to convert to full-accrual totals in a consolidation worksheet for the second year?
A) A above.
B) B above.
C) C above.
D) D above.
E) E above.

Question

When a company applies the initial value method in accounting for its investment in a subsidiary, and the subsidiary reports income in excess of dividends paid, what entry would be made to convert to full-accrual totals in a consolidation worksheet for the second year? 
A) A above. 
B) B above. 
C) C above. 
D) D above. 
E) E above.

Quizplus · Accepted Answer

The Answer of When a company applies the initial value method in accounting for its investment in a subsidiary, and the subsidiary reports income in excess of dividends paid, what entry would be made to convert to full-accrual totals in a consolidation worksheet for the second year? 
A) A above. 
B) B above. 
C) C above. 
D) D above. 
E) E above.

When a Company Applies the Initial Value Method in Accounting