Under the Cost Method,
A)the parent's investment in the subsidiary is recorded at cost,and never changed thereafter.
B)the parent records its pro rata share of the subsidiary's post-acquisition income as an increase to the investment account and reduces the investment account with its share of the dividends declared by the subsidiary.
C)the parent records its pro rata share of the subsidiary's cumulative earnings as an increase to the investment account and reduces the investment account with its share of the dividends declared by the subsidiary.
D)the parent's investment in the Subsidiary is recorded at Cost and reduced by an excess dividends received from the subsidiary.

Question

Quizplus · Accepted Answer

The Answer of Under the Cost Method,
A)the parent's investment in the subsidiary is recorded at cost,and never changed thereafter.
B)the parent records its pro rata share of the subsidiary's post-acquisition income as an increase to the investment account and reduces the investment account with its share of the dividends declared by the subsidiary.
C)the parent records its pro rata share of the subsidiary's cumulative earnings as an increase to the investment account and reduces the investment account with its share of the dividends declared by the subsidiary.
D)the parent's investment in the Subsidiary is recorded at Cost and reduced by an excess dividends received from the subsidiary.