Consolidated Net Income would be:
A) the same under both the Cost and Equity Methods.
B) higher if the parent chooses to use Equity Method rather than the Cost Method.
C) higher if the parent chooses to use the Equity Method rather than the Cost Method,
provided that the subsidiary showed a profit.
D) lower if the parent chooses to use Equity Method rather than the Cost Method.
A) the same under both the Cost and Equity Methods.
You might also like to view...
Describe the VALS framework.
What will be an ideal response?
Callable bonds can be redeemed by the issuing corporation at the fair market price of the bonds
Indicate whether the statement is true or false
Which of the following is a method that companies might adopt in order to increase their direct foreign investment?
A. exporting B. global sourcing C. strategic alliances D. licensees
Which of the following is NOT a benefit of distributed data processing?
A. increased responsiveness to organizational needs B. better correspondence to organizational patterns C. greater user involvement and control D. enhanced centralization of data definitions