Where does stock investment in subsidiary company located in balance sheet
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Where does stock investment in subsidiary company located in balance sheet
When you have an investment in subsidiary it means that you are going to perform a consolidated financial statements and you should eliminate the investment in subsidiary with the equity accounts of the subsidiary. Accordingly, investment in subsidiary will be zero in the CONSOLIDATED FINANCIAL STATEMENTS. However, in the books of the parent company (Trial balance) investment in subsidiary should be classified as long-term assets.
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