Based on the preceding information, in the entry to eliminate the investment balance:

A) additional paid-in-capital will be credited for $20,000.

B)retained earnings will be credited for $10,000.

c) retained earnings will be credited for $20,000.

D) noncontrolling interest will be debited for 30,000.

Required information On January 1, 20X8, Parsley Corporation acquired 75 percent of Sage Company's voting common stock for $90,000 cash. At that date, the fair value of the noncontrolling interest was $30,000. Sage's balance sheet at the date of acquisition contained the following balances: Cash Accounts Receivable Land Building and Equipment Less: Accumulated Depreciation Total Assets Sage Company Balance Sheet January 1, 2008 $ 10,000 Accounts Payable 20,000 Notes Payable 40,000 Common Stock 165,000 Additional Paid-In Capital (50,000) Retained Earnings $185,000 Total Liabilities and Equity $ 35,000 50,000 100,000 20,000 (20,000) $ 185,000 At the date of acquisition, the reported book values of Sage's assets and liabilities approximated fair value. Consolidating entries are being made to prepare a consolidated balance sheet immediately following the business combination