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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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