All the following statements are correct regarding the consolidation process subsequent to acquisition date, except:

		Intercompany accounts must be eliminated from the consolidated balances.
		Consolidated balances equal the sum of the account balances from the parent and subsidiary including the effects of adjusting and eliminating consolidation entries.
		Consolidation starts with the accounts and balances from the separate adjusted trial balances of the parent and subsidiary.
		Consolidation adjusting and eliminating entries must be formally recorded in the separate companies accounting records.