3. Which is true regarding the Investment in Subsidiary Stock account?
Chapter1: Financial Statements And Business Decisions
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![3. Which is true regarding the Investment in Subsidiary Stock account? *
[a] It is accounted for in the parent's books and is included as non – current assets in the
parent's balance sheet
[b] It is not included in the consolidated balance sheet of parent and subsidiary
[c] It is decreased and or increased by the difference between fair value and book value of net
assets of the subsidiary for consolidation purposes.
[d] All of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F47799160-4e7f-47c6-99f7-0842b3a6d73a%2Fa79d6999-d169-4dc9-81ea-b18c437d584e%2Fw6g1vv4_processed.png&w=3840&q=75)
Transcribed Image Text:3. Which is true regarding the Investment in Subsidiary Stock account? *
[a] It is accounted for in the parent's books and is included as non – current assets in the
parent's balance sheet
[b] It is not included in the consolidated balance sheet of parent and subsidiary
[c] It is decreased and or increased by the difference between fair value and book value of net
assets of the subsidiary for consolidation purposes.
[d] All of the above
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