Begin with information provided,but assume instead that Saucy declared a stock dividend of 3,000 shares on its $5 par value common stock.The investment elimination entry required to prepare a consolidated balance sheet immediately after the stock dividend is issued will include a debit to Additional Paid-In Capital for:

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When Saucy declares a stock dividend of 3,000 shares on its $5 par value common stock, the investment elimination entry to prepare a consolidated balance sheet involves adjusting for the excess of the market value over the par value of the shares issued as dividends. Assuming the market value is significantly higher than the par value, the debit to Additional Paid-In Capital would reflect the difference between the market value of the shares issued and their par value. Without specific market value information provided, the correct choice is based on understanding that the elimination entry adjusts for the distribution of the stock dividend by recognizing any excess of market value over par value in Additional Paid-In Capital. Choice B is selected in the absence of detailed calculations or specific market value data provided in the question.

Begin with Information Provided,but Assume Instead That Saucy Declared a Stock