On the date of acquisition, consolidated retained earnings and consolidated ordinary shares in shareholders' equity is equal to:

A) the sum of the parent and subsidiary's shareholders' equity.
B) the sum of the parent's shareholders' equity plus its pro rata share of the subsidiary's shareholders' equity.
C) the parent's shareholders' equity.
D) the subsidiary's shareholders' equity.

Consolidated Retained Earnings

The portion of earnings not distributed as dividends to shareholders and consolidated from both the parent company and its subsidiaries.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders.

Subsidiary's Shareholders' Equity

The net assets attributable to the shareholders of a subsidiary, consisting of share capital plus retained earnings.