In changing from the cost method to consolidation, which of the following is not required?

A) Replacement of the "Investment in Subsidiary" account with the assets and liabilities of the subsidiary
B) Elimination of intercompany transactions and balances
C) Elimination of the subsidiary's share capital account
D) Elimination of the subsidiary's retained earnings since acquisition

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost and dividends are recorded as income.

Elimination

The process in accounting of removing the effects of inter-company transactions to avoid double counting in consolidated financial statements.

Share Capital Account

a financial record that represents the funds raised by a company through issuing shares to its shareholders.