3. In a closing entry at the end of an accounting period, a parent company that uses...

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3. In a closing entry at the end of an accounting period, a parent company that uses the equity method of accounting for the operations of a subsidiary credits the Retained Earnings of Subsidiary account in the amount of the:

a. Balance of the subsidiary’s Retained Earnings account.

b. Dividends declared by the subsidiary to the parent.

c. Parent’s share of the subsidiary’s net income.

d. Parent’s share of the undistributed earnings of the subsidiary.

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