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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 US parent acquired all of the stock of an Italian subsidiary on January for The excess paid over book value was attributed to goodwill, which was impaired by during The subsidiarys January and December trial balances are as follows, in euros:
December Dr Cr January Dr Cr
Cash, receivables
Inventories, at FIFO cost
Plant & equipment, net
Liabilities
Capital stock
Retained earnings, beginning
Dividends
Sales revenue
Cost of goods sold
Depreciation expense
Outofpocket expenses
Sales, purchases, and recurring outofpocket expenses occurred evenly throughout the year. The subsidiarys beginning inventory for was purchased at the end of The subsidiary did not purchase any plant & equipment during Exchange rates $ are:
$
January $
Average for
Rate when dividends declared
Rate when ending inventory purchased
December
When consolidating the subsidiarys trial balance accounts with those of the parent, if the subsidiarys functional currency is the US dollar, eliminating entry R debits goodwill in the amount of
Select one:
a $
b $
c $
d $
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