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If a Subsidiary Uses Pushdown Accounting, What Is the Effect

Question 67

Multiple Choice

If a subsidiary uses pushdown accounting, what is the effect on consolidation eliminating entries at the date of acquisition?


A) No effect
B) It is not necessary to eliminate the subsidiary's equity accounts.
C) It is not necessary to revalue the subsidiary's net assets to fair value.
D) An additional entry is required to reverse the pushdown accounting entry.

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