sidiary relationship percent's outstanding common stock) emphasizes: The traditional definition of control for a parent company subsidiary relation ownership of me chin of more than 50% of the subsidiary's outstanding common stock Economic substance b. Legal form c. Both legal form and economic substance d. Neither legal form and economic substance 50% of the outstanding voting common stock 2 An investor company that owns more than 50% of the outstanding of an investee may not control the investee it The investee is an reorganization in bankruptcy proceedings b. There is a large passive minority interest in the investee c.A part of the investor company's ownership is indirect. d. The investee is a finance-related enterprise. yamala BASR Statement No. 94" Consolidation of ALL Majority Owned Subsidiaries from consolidation: a. Subsidiaries not controlled by the parent company. b. No subsidiaries of the parent company. c.Finance-related subsidiaries of the parent company. d. Foreign subsidiaries of the parent company. 4.In complete working paper elimination (In journal entry format) for a parent company and its wholly owned subsidiary on the date of the business combination, the total of the debits generally equals the a.Parent company's total cost of it's investment in the subsidiary. b Current fair value of the subsidiary's identifiable net assets. c. Total paid-in capital of the subsidiary. Carrying amount of the subsidiary's identifiable net assets. 5. In a working paper elimination (in journal entry format) for the consolidated balance sheet of a parent company and its wholly owned subsidiary's on the date of a business combination, the subtotal of the debit to the subsidiary's stockholders' equity accounts equal the: a.Balance of the parent company's investment ledger account. b. Current fair value of the subsidiary's identifiable assets. c.Carrying amount of the subsidiary's identifiable net assets. d. Current fair value of the subsidiary's identifiable assets, including goodwill. 6. In the working paper for consolidated balance sheet prepared on the date of the business combinationof a parent company and its wholly owned subsidiary, whose liabilities had a current fair value equal to their carrying amounts, the total of the eliminations column is equal to: a. The total stockholder's equity of the subsidiary. b. An amount that is not determinable. c. The current fair value of the subsidiary's identifiable net assets. d. The current fair value of the subsidiary's total net assets, including goodwill. 7. Difference between current fair values and carrying amounts of the identifiable net assets of a subsidiary on the date of a business combination are recognized in a a. Note to the consolidated financial statement. b. Parent company journal entry. c. Working paper elimination d. Subsidiary journal entry