Use the following to answer questions 22-23: Hawk Corporation's 85 percent-owned subsidiary, Rush Company, declared a 30 percent common stock dividend, resulting in the capitalization of the par value of the shares issued. Immediately prior to the stock dividend, Rush had common stock outstanding of $3,000,000, additional paid-in capital of $1,000,000, and retained earnings of $2,000,000. Hawk's investment in Rush was acquired at book value and is carried using the equity method. 22. Consider the information given above. When Hawk prepares consolidated financial statements for the year in which the stock dividend was declared, what is the total amount of Hawk's investment in Rush that must be eliminated? A) $0 B) $4,462,500 $5,100,000 D) $5,737,500 23. Consider the information given above. When Hawk prepares consolidated financial statements for the year in which the stock dividend was declared, which of the following will be included as an elimination in the consolidation workpaper? A) Income from Stock Dividend; $900,000 debit. B) Common Stock--Rush; $3,900,000 debit. C) Stock Dividends Declared; $900,000 credit. D) Both b and c. d 24. Midway through this year, a parent corporation acquires a subsidiary in a business combination treated as a purchase. The parent's share of consolidated net income computed for the year should include the parent's confirmed separate operating income for the year plus: A) the parent's share of the subsidiary's pre-acquisition earnings for the year, plus the parent's share of the subsidiary's post-acquisition earnings for the year. all of the subsidiary's pre-acquisition earnings for the year, plus the parent's share of the subsidiary's post-acquisition earnings for the year. C) the parent's share of the subsidiary's post-acquisition confirmed earnings for the year. D) all of the subsidiary's post-acquisition earnings for the year, minus the parent's share of the subsidiary's pre-acquisition earnings for the year. B)