A parent company uses U.S. GAAP and presents its financial statements in U.S. dollars. It has a subsidiary in Singapore whose books are maintained in Singapore dollars, following IFRS. The subsidiary's accounts are included in the consolidated financial statements of the parent:

Select one:

A. in Singapore dollars, following IFRS.

B. in U.S. dollars, following U.S. GAAP.

C. in U.S. dollars, following IFRS.

D. in Singapore dollars, following U.S. GAAP.

A wholly-owned subsidiary reports income of $5 million, other comprehensive income of $100,000, and dividends of $1 million. There are no revaluation write-offs. Eliminating entry (C) reduces Investment in Subsidiary by:

Select one:

A. $5,000,000.

B. $4,000,000.

C. $4,100,000.

D. $5,100,000.

At the date of acquisition, a subsidiary's inventory (FIFO, sold in the year of acquisition) is overvalued by $600, its plant assets (10-year life, straight-line) are overvalued by $4,000, and it has previously unreported intangibles valued at $1,000 (2-year life, straight-line). Goodwill from the acquisition is not impaired. In the second year following acquisition, the subsidiary reports net income of $2,000. Using the complete equity method, in the second year the parent reports equity in the net income of the subsidiary of

Select one:

A. $1,100

B. $1,900

C. $1,300

D. $500

A parent company acquires a subsidiary on January 1, 2017. The subsidiary's bonds payable (five-year remaining life) are undervalued by $5,000 at the date of acquisition. Straight-line amortize the premium/discount, and directly adjust bonds payable for premium/discount amortization. On the consolidation working paper prepared at December 31, 2018 (two years later), eliminating entry (R) includes:

Select one:

A. A debit to bonds payable of $5,000.

B. A credit to bonds payable of $4,000.

C. A debit to interest expense of $1,000.

D. A credit to interest expense of $1,000.