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A U . S . parent acquired all of the stock of an Italian subsidiary on January 1 , 2 0 2 3 , for

A U.S. parent acquired all of the stock of an Italian subsidiary on January 1,2023, for 2,100,000. The excess paid over book value was attributed to goodwill, which was impaired by 70,000 during 2023. The subsidiarys January 1 and December 31,2023, trial balances are as follows, in euros:
December 31,2023 Dr (Cr) January 1,2023 Dr (Cr)
Cash, receivables 252,000280,000
Inventories, at FIFO cost 700,000560,000
Plant & equipment, net 1,820,0002,240,000
Liabilities (1,512,000)(1,960,000)
Capital stock (280,000)(280,000)
Retained earnings, beginning (840,000)(840,000)
Dividends 140,000
Sales revenue (5,600,000)
Cost of goods sold 3,220,000
Depreciation expense 420,000
Out-of-pocket expenses 1,680,000
00
Sales, purchases, and recurring out-of-pocket expenses occurred evenly throughout the year. The subsidiarys beginning inventory for 2023 was purchased at the end of 2022. The subsidiary did not purchase any plant & equipment during 2023. Exchange rates ($/) are:
$/
January 1,2023 $1.19
Average for 20231.24
Rate when dividends declared 1.26
Rate when ending inventory purchased 1.28
December 31,20231.29
When consolidating the subsidiarys trial balance accounts with those of the parent, if the subsidiarys functional currency is the U.S. dollar, eliminating entry (R) debits goodwill in the amount of
Select one:
a. $1,264,200
b. $1,128,400
c. $1,166,200
d. $1,082,900

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