On the date of acquisition,consolidated shareholder equity is equal to:
A)the sum of the parent and subsidiary's shareholder equities.
B)the sum of the parent's shareholder equity plus its pro rata share of the subsidiary's shareholder equity on the date of acquisition.
C)the parent's shareholder equity.
D)the subsidiary's shareholder equity.

Question

Quizplus · Accepted Answer

On the date of acquisition, consolidated shareholder equity is equal to the parent's shareholder equity. The subsidiary's equity is not added; instead, the parent's investment in the subsidiary is reflected in the consolidated financial statements.

On the Date of Acquisition,consolidated Shareholder Equity Is Equal To