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Unformatted text preview: through another subsidiary of the parent. Answer: True 7.A debit to Goodwill Subsidiary in a working paper elimination (in journal entry format) for a parent company and its wholly owned subsidiary indicates that the current fair values of the subsidiary's identifiable net assets exceeded their carrying amounts on the date of the business combination. Answer: False 8.Goodwill recognized in a business combination of a parent company and a partially owned subsidiary is attributable to the subsidiary. Answer: False 9.In a business combination resulting in a parent company-subsidiary affiliation, the parent company's Investment in Subsidiary Common Stock ledger account is not closed, as it is in other types of business combinations. Answer: True 10.Under the parent company concept of consolidated financial...
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- Spring '11