Under the purchase method, the assets and liabilities of the subsidiary are reflected on the consolidated statements at their book values.

Name: Under the purchase method, the assets and liabilities of the subsidiary are reflected on the consolidated statements at their book values.
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Under the purchase method, the assets and liabilities of the subsidiary are reflected on the consolidated statements at their fair market values, not their book values.

Under the Purchase Method, the Assets and Liabilities of the Subsidiary