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A Wholly-Owned Subsidiary Reports Income of $2 Million and an Other

Question 17

Multiple Choice

A wholly-owned subsidiary reports income of $2 million and an other comprehensive loss of $100,000. The subsidiary's revalued net assets consist of indefinite life identifiable intangible assets. Impairment testing for the year reveals $250,000 in impairment on these intangibles. The subsidiary did not declare any dividends. Eliminating entry (C) reduces Investment in Subsidiary by:


A) $2,000,000.
B) $1,750,000.
C) $1,650,000.
D) $1,950,000.

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