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_____ When a Parent Uses the Equity Method and Consolidates

Question 59

Multiple Choice

_____ When a parent uses the equity method and consolidates a subsidiary that has never reported a loss, consolidated retained earnings will always be


A) More than the parent's retained earnings.
B) Less than the parent's retained earnings.
C) Equal to the parent's retained earnings.
D) More than or less than the parent's retained earnings, depending on whether the parent has a positive or negative balance in its Retained Earnings account.
E) None of the above.

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