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A parent provides services costing it $800,000 to its subsidiary during the current year. The parent charges the subsidiary $1,000,000 for the services. The subsidiary owes $150,000 for these services at year-end. Year-end consolidation eliminating entries for this transaction include:

Select one:

a. Debit accounts receivable $150,000, credit accounts payable $150,000

b. Debit services revenue $1,000,000, credit services expense $1,000,000

c. Debit services expense $200,000, credit services revenue $200,000