When consolidating the balance sheets of a parent and its subsidiary at the date of acquisition, consolidation eliminating entries

1. Remove the full balance of the parents investment account and the subsidiarys equity accounts, and adjust the subsidiarys assets and liabilities to fair value at the date of acquisition.

2. Remove the full balance of the parents investment account and the subsidiarys equity accounts.

3. Remove the book value of the parents investment account, the subsidiarys capital stock accounts, and revalue the subsidiarys tangible assets to fair value.

4. Remove the subsidiarys equity accounts and revalue the subsidiarys assets and liabilities to fair value.