Under the purchase method of consolidation, if the investor owns 100% of the investee, the net assets of the investee company are reported on the consolidated balance sheet on the acquisition date at their:

Question

Quizplus · Accepted Answer

Under the purchase method of consolidation, the net assets of the investee company are reported on the consolidated balance sheet at fair market value on the acquisition date. This includes both tangible and intangible assets, which are revalued to their fair values at the acquisition date. Therefore, option B is the correct choice.

Under the Purchase Method of Consolidation, If the Investor Owns