Answer True or False to the following statements

1. The investment account should be shown on the parents income statement.
2. The price paid in a bargain purchase might exceed the recorded book value of the subsidiarys net assets.
3. Assets acquisition and stock acquisition are accounted for in a similar manner.
4. In consolidated reporting only the balance sheet and the income statement are required to be presented.
5. Consolidation might not be appropriate even when the majority owner has control of a subsidiary that is in bankruptcy.
6. The recording of the investment on another company is a book entry.
7. Only the parent stockholders equity accounts will be shown on the consolidated financial statements.