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On January 1, 2011, P Company Purchased All of the Outstanding

Question 91

Multiple Choice

On January 1, 2011, P Company purchased all of the outstanding common stock of S Company. The consolidation of the two balance sheets requires a


A) credit adjustment to eliminate P Company's "Investment in S Company" account.
B) debit adjustment to eliminate S Company's "Investment in P Company" account
C) debit adjustment to eliminate P Company's "Investment in S Company" account
D) credit adjustment to eliminate S Company's "Investment in P Company" account

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