At the end of 2017, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co.for
A) $124,400.
B) $126,000.
C) $127,000.
D) $ 76,400.
E) $ 0.

Question

Quizplus · Accepted Answer

The consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a debit to Kaltop's retained earnings for $127,000 and a credit to Investment in Kaltop Co. for $127,000, which is the amount of Kaltop's earnings that had been accrued by Cale. Therefore the correct answer is C.

At the End of 2017, the Consolidation Entry to Eliminate