Question

Which one of the following accounts would not appear in the consolidated financial statements at the...

Which one of the following accounts would not appear in the consolidated financial statements at the end of the first fiscal period of the combination?

a. Goodwill. b. Equipment. c. Investment in Subsidiary. d. Common Stock. e. Additional Paid-In Capital.

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Answer #1
Answer:
Investment in Subsidiary should not appear on the consolidatec statements at end of first period of combination.
Option (C ) is Correct
Reason:
Goodwill , Equipment are part of Assets part in Balance Sheet where as
Common Stock and Additional Paid-In Capital are part of Liability and Equity part while preparing the consolidated financial statements at the end of the first fiscal period . So the only one Investment in Subsidiary is not a part of it.
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