Under push down accounting, the workpaper entry to eliminate the investment account includes a:
A) debit to Goodwill.
B) debit to Revaluation Capital.
C) credit to Revaluation Capital.
D) debit to Revaluation Assets.

Question

Quizplus · Accepted Answer

Under push down accounting, the investment account is eliminated by debiting Revaluation Capital to reflect the revaluation of the subsidiary's net assets to fair value.

Under Push Down Accounting, the Workpaper Entry to Eliminate the Investment