Final answer:
Consolidation eliminating entries for a bargain purchase are not required after the initial purchase year. The gain on a bargain purchase is recorded at initial recognition, and subsequent years only involve usual consolidation procedures without further adjustments for the bargain purchase.
Step-by-step explanation:
The correct statement concerning consolidation eliminating entries for a bargain purchase in subsequent years is that these eliminating entries are not required after the initial purchase year. When a bargain purchase occurs, it indicates that the acquiring company has purchased the acquiree for less than the fair value of its net assets. At the initial recognition, a gain on bargain purchase is recorded on the acquirer's financial statements. In subsequent years, there is no need for eliminating entries related to the bargain purchase as the initial entry has already aligned the book values with the amounts recognized in the consolidated financial statements. The adjustments in the following years would mainly revolve around the usual consolidation procedures, such as eliminating intercompany transactions and balances.