Question

Which of the following observations is NOT consistent with the use of push-down accounting?A) The revaluation capital account is part of the subsidiary's stockholders' equity.B) No differential arises in the consolidation process.C) Revaluation Capital account is eliminated in preparing consolidated statements.D) Consolidating entries related to the differential are needed in the worksheets.

Answer 1

Answer: The correct answer is " D) Consolidating entries related to the differential are needed in the worksheets."

Explanation:  

Option "D" is the observation that is not consistent with the use of push-down accounting because consolidation entries related to the differential are not necessary in the worksheets.