Accounting for an investment in a subsidiary using the equity method and not consolidating it yields the

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“Accounting for an investment in a subsidiary using the equity method and not consolidating it yields the same net income as consolidating the subsidiary. Total assets will differ, however, depending on whether or not the investor consolidates the subsidiary.” Explain.

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Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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