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both multiple choice questions are easy to andwer pls answer them


5. Which one of the following accounts would not appear in the consolidated financial statements at the end of the first fisc
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Answer #1

5:- Anwer:- Option (A) is correct.

Investment in subsidiary doesn't appear in consolidated financial statements at the end of first period of combination because equity owned by parent company will be equivalent to owned by it's own equity after consolidation therefore an elimination adjustments made for reduce overstated amount of equity held by the parent company.

6:-Answer:- Option (C) is correct.

Under Fair value method, parent recognize" Dividend income". Under this method ,Contributed amount treated as "Investment available for sale". and it's purpose is earning income in form of dividend.

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