Question: If the parent accounts for subsidiaries using the equity method on its books, the retained earnings of each subsidiary is completely eliminated when the subsidiary

If the parent accounts for subsidiaries using the equity method on its books, the retained earnings of each subsidiary is completely eliminated when the subsidiary is consolidated. Which of the following support this statement?

Multiple select question.

The retained earnings cannot be purchased.

The book value of the net assets of the subsidiary is equal to the fair value of the consideration on the date of purchase.

The parent

s share of the subsidiary

s income since acquisition is already included in the parent

s equity

-

method retained earnings.

The noncontrolling interest

s share of the subsidiary

s retained earnings is not included in consolidated retained earnings.

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