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During 2016, a parent company billed its 100%-owned subsidiary for computer services at the rate of $1,000 per month. At year end, one month's bill
During 2016, a parent company billed its 100%-owned subsidiary for computer services at the rate of $1,000 per month. At year end, one month's bill remained unpaid. As a part of the consolidation process, net income a. should be reduced $12,000. b. should be reduced $1,000. c. needs no adjustment. d. needs an adjustment, but the amount is not provided by this information.
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