7. The appropriate recording (explanation omitted) for a parent company to reflect a loss on its subsidiary’s issuance of additional shares of common stock to the public is:

a. A working paper elimination debiting Nonoperating Loss from Subsidiary’s Issuance of Common Stock and crediting Investment in Subsidiary Company Common Stock.

b. A parent company journal entry debiting Nonoperating Loss from Subsidiary’s Issuance of Common Stock and crediting Investment in Subsidiary Company Common Stock.

c. A subsidiary journal entry debiting an additional paid-in capital ledger account and crediting Payable to Parent Company.

d. A note to the consolidated financial statements only.