Which of the following statement about the acquisition method (to prepare for consolidated financial statement) is true?

Multiple Choice

• Consideration transferred is recognized using fair value only if there is no contingent payment.

• Goodwill is recognized as the excess of the fair value of consideration transferred over book value of the subsidiary's net assets.

• Both companies' assets and liabilities are consolidated at their fair values..

• The parent does not use acquisition method if it owns more than 51% of the subsidiary.

• None of the above.