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In the installment acquisition of a controlling interest in a subsidiary, the Retained Earnings of Subsidiary/Investee ledger account is first

This question was answered on Apr 25, 2010. View the Answer
In the installment acquisition of a controlling interest in a subsidiary, the Retained Earnings of Subsidiary/Investee ledger account is first credited in a journal entry of the parent company/investor to: (Points :1)
Close the parent company/investor's revenue or investment income ledger account at the end of the accounting period that the first installment was acquired
Apply retroactively the equity method of accounting
Record the acquisition of a controlling interest in the subsidiary
Close the parent company's Intercompany Investment Income ledger account at the end of the accounting period in which a controlling interest in the subsidiary was acquired

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This question was asked on Apr 25, 2010 and answered on Apr 25, 2010.

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