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On January 1, 20X1, Opal Machines Corporation purchased all the common shares of Emerald Corporation for $500,000. The subsidiary's equity account balances on the acquisition
On January 1, 20X1, Opal Machines Corporation purchased all the common shares of Emerald Corporation for $500,000. The subsidiary's equity account balances on the acquisition date were $400,000 of Common Stock and $100,000 of Retained Earnings. In the year of acquisition, Emerald Developers reported net income of $90,000 and declared and paid dividends of $50,000. Based on this information, which of the following accounts are debited in the basic consolidation entry? O Investment in Emerald Corporation for $500,000 O Income from Emerald Corporation for $90,000; Dividends Declared for $50,000 O Dividends Declared for $50,000; Investment in Emerald Corporation for $540,000 O Common Stock for $400,000; Retained Earnings for $100,000; Income from Emer- ald Corporation for $90,000
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