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When a subsidiary owns shares of the parent, the subsidiarys investment account Question 9 options: a) should be accounted for using the equity method. b)

When a subsidiary owns shares of the parent, the subsidiarys investment account

Question 9 options:

a)

should be accounted for using the equity method.

b)

is maintained at its original cost since the shares have no claim on income.

c)

is not eliminated so the subsidiarys investment in the parent is displayed on the balance sheet.

d)

may be accounted for using the cost, equity or sophisticated equity method.

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