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When a company applies the initial method in accounting for its investment in a subsidiary and the subsidiary reports income in excess of dividends paid,

When a company applies the initial method in accounting for its investment in a subsidiary and the subsidiary reports income in excess of dividends paid, what entry would be made for a consolidation worksheet?

A) Retained earnings Investment in subsidiary

B) Investment in subsidiary Retained earnings

C) Investment in subsidiary Equity in subsidiary's income

D) Equity in subsidiary's income Investment in subsidiary

E) Additional paid-in capital Retained earnings

D above

A above

C above

E above

B above

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