The pre-acquisition entries are used to:
A) eliminate the pre-acquisition equity of the subsidiary.
B) eliminate the post-acquisition equity of the subsidiary.
C) eliminate the investment in the subsidiary and the pre-acquisition equity of the subsidiary.
D) eliminate the investment in the subsidiary and the post-acquisition equity of the subsidiary.

Question

Quizplus · Accepted Answer

Pre-acquisition entries are used to eliminate the investment in the subsidiary and the pre-acquisition equity of the subsidiary to avoid double counting in consolidated financial statements.

The Pre-Acquisition Entries Are Used To