The elimination entry to prepare the consolidated financial statements on December 31,20X7 would include a:
A)credit to common stock for $625,000
B)debit to retained earnings for $37,500
C)credit to Investment in Siena Co.for $976,500
D)credit to NCI in the net assets of Siena Co.for $232,500

Question

Quizplus · Accepted Answer

The elimination entry would include a credit to the Investment in Siena Co. account to eliminate the parent's investment in the subsidiary against the subsidiary's equity accounts.

The Elimination Entry to Prepare the Consolidated Financial Statements on December