A parent acquires the voting stock of a subsidiary on January i. 2019. Required revaluations ofthe subsidiary's net assets are: * Previously unreported identifiable intangibles valued at 53 million, with a remaining life of'iO years, straight-line * Goodwill It is now December 3i , 2021, three years after the acquisition. The goodwill is unimpaired during this period. The parent reports its investment in the subsidiary using the cost method. The subsidiary repo net income, other comprehensive income, and dividends in the three years since the acquisition: Other Comprehensive Income (Loss) Net Income Dividends $600,000 700,000 750,000 150.000 Eliminating entry (A) on the 2018 consolidation working paper includes: 0 A. A credit to beginning retained earnings of $950,000 0 B. A credit to beginning AOCI of $220 0 C. A debit to Investment in Subsidiary oi' $1,300,000 0 DA credit to beginning retained earnings of $500,220 Park Corporation acquired the voting stock of Sequoia Company on January 1, 2020 for $25 million in cash and stock. At the date of acquisition, Sequoia's book value totaled $3 million. consisting of$'| .6 million in capital stock, $1.8 million in retained earnings, and $400,000 in accumulated other comprehensive losses. Sequoia's reported net assets at the date of acquisition were carried at amounts approximating fair value, except its inventory was overvalued by $500,000 (sold in 2020), its plant assets {10year life, straight-line) were overvalued by $3,500,000, and its longterm debtipremium amortized over 'I0 years, straightline) is undervalued by $100,000. Sequoia also had previously unreported identifiable intangibles (5year life, straightline) valued at $5,000,000. It is now December 31,2020. Sequoia reports net income of$i ,200,000 and other comprehensive income of $50,000 for 2020 and declares and pays dividends of $200,000. None ofthe revaluations are impaired in 2020. Park uses the complete equity method to account for its investment. Park's beginning balance of accumulated other comprehensive income is $175,000, and it reports $250,000 in other comprehensive income for 2020 on its own books. The balance for accumulated other comprehensive income on the December 31, 2020 consolidated balance sheet is: O A. $825,000 0 B. $475,000 0 C. $425,000 0 D.$ 25,000 A parent acquired all of the stock of a subsidiary. The subsidiary had originally issued longterm debt when the market rate of interest was 3%. The market rate of interest for the debt at the date of acquisition was 5%. How does the change in market interest rate affect the consolidated financial statements? 0 A. Acquired longterm debt is valued at a higher amount. B. Future interest expense is lower. 0 C. Goodwill is lower. 0 D.There is no effect on consolidated account balances