Assuming Springfield uses pushdown accounting at the date of acquisition, eliminating entry (E) includes a

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CPushdown accounting is a method used in accounting for acquisitions where the financial statements of the subsidiary are prepared as if the acquisition-related adjustments are pushed down to the subsidiary's own financial statements. This often includes recognizing new asset valuations, goodwill, and adjusting equity accounts to reflect the purchase price. Option B is correct because pushdown capital (or additional paid-in capital) is often adjusted to reflect the excess of purchase price over the fair value of net assets acquired. This entry would adjust the equity section of the subsidiary's balance sheet to reflect the new capital structure post-acquisition.Option C is correct because the investment in Springfield account would be debited to eliminate the parent's investment account against the subsidiary's equity accounts in the consolidation process. This entry is part of the elimination entries needed to prepare consolidated financial statements, ensuring that intercompany balances are eliminated.

Assuming Springfield Uses Pushdown Accounting at the Date of Acquisition