Assuming there have been no intercompany transactions, which of the following is an incorrect statement concerning the financial statement or statements of a parent and its 60% owned subsidiary? * a. Consolidated financial statements would include 100% of the assets and liabilities of the subsidiary. b. Answer not given c. If the parent does not prepare consolidated financial statements, it must use the equity method of accounting. d. Net income of the parent would be the same whether or not consolidated statements were prepared. e. The non-controlling interest in net assets would not be shown on the consolidated balance sheet

Question

Assuming there have been no intercompany transactions, which of the following is an incorrect statement concerning the financial statement or statements of a parent and its 60% owned subsidiary? *
a. Consolidated financial statements would include 100% of the assets and liabilities of the subsidiary.
b. Answer not given
c. If the parent does not prepare consolidated financial statements, it must use the equity method of accounting.
d. Net income of the parent would be the same whether or not consolidated statements were prepared.
e. The non-controlling interest in net assets would not be shown on the consolidated balance sheet.