Question
The format of a parent company's journal entry (explanation omitted), under the equity method of accounting, to adjust a wholly owned subsidiary's net income or
The format of a parent company's journal entry (explanation omitted), under the equity method of accounting, to adjust a wholly owned subsidiary's net income or loss for depreciation and amortization of differences between date-of-combination current fair values and carrying amounts of the subsidiary's identifiable net assets is:
a.
Intercompany Expenses debit and Intercompany Investment Income credit.
b.
Intercompany Investment Income debit and Investment in Subsidiary Common Stock credit.
c.
Investment in Subsidiary Common Stock debit and Intercompany Investment Income credit.
d.
Depreciation Expense debit, Amortization Expense debit and Investment in Subsidiary Common Stock credit.
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