Which of the following observations is NOT consistent with the use of push-down accounting?
A)The revaluation capital account is part of the subsidiary's stockholders' equity.
B)No differential arises in the consolidation process.
C)Revaluation Capital account is eliminated in preparing consolidated statements.
D)Consolidating entries related to the differential are needed in the worksheets.

Question

Quizplus · Accepted Answer

Push-down accounting eliminates the need for differential-related consolidating entries because the subsidiary's assets and liabilities are already adjusted to fair value.

Which of the Following Observations Is NOT Consistent with the Use