During 20X3, a parent company billed its 100%-owned subsidiary for computer services at the rate of $1,000 per month. At year end, one month's bill remained unpaid. As a part of the consolidation process, net income

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The parent's revenue of $12,000 should be eliminated, as should the subsidiary's expense. However, as these amounts are equal, consolidated net income is not impacted; only the individual line items in the consolidated income statement.

During 20X3, a Parent Company Billed Its 100%-Owned Subsidiary for Computer