23.

Sandy Corporation receives management consulting services from its 92 percent-owned subsidiary, Beach Inc. For the year 20X8, Beach billed Sandy $140,000 for such services and collected all but $7,900 by year-end. Beach's labor cost and other associated costs for the employees providing services to Sandy totaled $121,000 in 20X8. Sandy reported $2,567,000 of income from its own separate operations for 20X8, and Beach reported net income of $695,000. What amount of receivable/payable should be eliminated in the 20X8 consolidated financial statements?

Group of answer choices

$121,000

$140,000

$7,900

$7,268