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Determine the proper accounting treatment

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Reference no: EM132631987

Question - For each parent-subsidiary relationship below, determine the proper accounting treatment by selecting the appropriate response in the menu to the left of each statement.

1 Subsidiary is in bankruptcy.

2 Subsidiary is in a foreign country where severe restrictions have been imposed by that government.

3 Parent has active plans to sell subsidiary in the near future.

4 Parent company is a manufacturing operation whereas subsidiary is a finance operation.

Select Options

Consolidation of subsidiary is required.

Consolidation of subsidiary is allowed but not required.

Consolidation of subsidiary is not allowed.

Reference no: EM132631987

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