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Pell Company provides services to its subsidiary, Slicker Corporation, during 2018. This is how Pell and Slicker report these services on their respective income statements:
Pell Company provides services to its subsidiary, Slicker Corporation, during 2018. This is how Pell and Slicker report these services on their respective income statements:
Pell | Slicker | |
Service revenue | $ 400,000 | $ -- |
Service expense | 350,000 | 400,000 |
How should the 2018 consolidated income statement report these services?
A. | Service revenue $400,000; Service expense $350,000 | |
B. | Service revenue $-0-; Service expense $350,000 | |
C. | Service revenue $400,000; Service expense $750,000 | |
D. | Service revenue $-0-; Service expense $750,000 |
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