Dior Manufacturing purchased 100% of Venus, Inc. common stock for $900,000 when Venus had stockholders' equity consisting of $400,000 of common stock and $300,000 of retained earnings. In the consolidated balance sheet, Dior's investment in Venus will be shown at:
In business combination, the investment account should be eliminated and need not be presented in the statement of financial position.
Answer and Explanation:
The investment account should be eliminated and not presented in the balance sheet.
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from Finance 305: Risk ManagementChapter 3 / Lesson 3