J1 3. Which of the following is true of the consolidation process? 12 a. Even though the initial accounting for asset acquisitions and 100%% stock acquisitions CE differs, the consolidation process should result in the same balance sheet. b. Account balances are combined when recording a stock acquisition so the 35 consolidation is automatic. c. The assets of the non-controlling interest will be predominately displayed on the consolidated balance sheet. d. The investment in subsidiary account will be displayed on the consolidated balance 70 sheet. 4. Consolidation might not be appropriate even when the majority owner has control if: a The subsidiary is in bankruptcy. 15 b. A manufacturing-based parent has a subsidiary involved in banking activities. c. The subsidiary is located in a foreign country. d. The subsidiary has a different fiscal-year end than the parent. 50