For a holding company, all pre-acquisition profits/losses of the subsidiary company are ______, while all post-acquisition profits/losses of the subsidiary…
For a holding company, all pre-acquisition profits/losses of the subsidiary company are ______, while all post-acquisition profits/losses of the subsidiary company are ______.
Show answerHide answer
Correct answer: (A) capital profits/losses, revenue profit/losses
Explanation
The subsidiary's profits or losses earned before acquisition are capital profits/losses for the holding company. Those earned after acquisition are revenue profits/losses.