When the parent forms a new subsidiary:
A) there should be no acquisition differential.
B) gain or loss will usually arise.
C) push down accounting rules must be followed.
D) it should not be included in the company's consolidated financial statements as this would effectively be double-counting.

Question

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The Answer of When the parent forms a new subsidiary:
A) there should be no acquisition differential.
B) gain or loss will usually arise.
C) push down accounting rules must be followed.
D) it should not be included in the company's consolidated financial statements as this would effectively be double-counting.

When the Parent Forms a New Subsidiary