Which of the following statements is true regarding mutual ownership between a parent and its subsidiary? 

Multiple Choice 

The treasury stock approach is required to eliminate subsidiary shares held by the parent company, 

The treasury stock approach is required to reflect parent shares held by the subsidiary. 

The shares of the parent held by a subsidiary should be treated as outstanding stock on the consolidated balance sheet. 

The parent company does not need to file consolidated financial statements if there is mutual ownership.

 Only the subsidiary's shares held by the parent should be eliminated in consolidation,