Question: (Appendix) Under the purchase method, why is it important to consider the net market value of the subsidiarys assets instead of the book value? Is

(Appendix) Under the purchase method, why is it important to consider the net market value of the subsidiary’s assets instead of the book value? Is adding the assets and liabili¬ ties of the subsidiary to the balance sheet of the parent a violation of the historical cost principle? Why or why not?

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