When preparing a consolidation worksheet for a parent and its foreign subsidiary accounted for under the equity method, which of the following statements is false?
A. The cumulative translation adjustment included in the Investment in Subsidiary account is eliminated.
B. The subsidiary's stockholders' equity accounts as of the beginning of the year are eliminated.
C. The excess of fair value over book value since the date of acquisition is revalued for the change in exchange rate.
D. The amount of equity income recognized by the parent in the current year is eliminated.
E. The allocations of excess of fair value over book value at the date of acquisition are eliminated.
Answer: E
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