A wholly-owned subsidiary provides services to its parent during the year. Cost of services provided is $400,000. The subsidiary charged the parent $600,000 for the services.

Which statement isfalseconcerning eliminating entry (I) related to these intercompany services?

Select one:

A.Eliminating entry (I) removes the parent's service expense of $600,000.

B.Eliminating entry (I) removes the subsidiary's service expense of $400,000.

C.Eliminating entry (I) removes the subsidiary's service revenue of $600,000.

D.Eliminating entry (I) has no effect on consolidated income.

A is incorrect