The depreciation and amortization of differences between current fair values and carrying amounts of a subsidiary's identifiable net assets is included in consolidated financial statements by means of a working paper elimination.

Question

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In consolidated financial statements, adjustments for differences between the fair value and carrying amounts of a subsidiary's net assets are made through working paper eliminations to reflect the accurate value of the subsidiary's assets and liabilities.

The Depreciation and Amortization of Differences Between Current Fair Values