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A parent charges $75,000 for services provided to a subsidiary. The price reflects a markup of 25% over cost. What working paper eliminating entry is

A parent charges $75,000 for services provided to a subsidiary. The price reflects a markup of 25% over cost. What working paper eliminating entry is necessary with respect to this intercompany transaction?

a.Decrease Service Revenue and Service Expense for $75,000.

b.Decrease Service Revenue and Service Expense for $60,000.

c.Increase Investment in Subsidiary and decrease Service Expense for $75,000.

d.Decrease Retained Earnings and Service Expense for $15,000.

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