1. A parent acquires all of the stock of a subsidiary for $40 million in cash. The subsidiary's books
report the following account balances at the date of acquisition (in trial balance format). Date-of-
acquisition fair values are also displayed. On the consolidation working paper, eliminating entry
(E) debits Select one: a. retained earnings by $3 million. b. liabilities by $2 million. c.
accumulated other comprehensive loss by $1 million. d. investment in subsidiary by $10 million.
A parent acquires all of the stock of a subsidiary for $40 million in cash. The subsidiary's books
report the following account balances at the date of acquisition (in trial balance format). Date-of-
acquisition fair values are also displayed. On the consolidation working paper, eliminating entry
( R ) credits Select one: a. liabilities by $2 million. b. investment in subsidiary by $10 million. c.
current assets by $1 million. d. goodwill by $35 million. A parent acquires all of the stock of a
subsidiary for $65 million in cash. The subsidiary's books report the following account balances
at the date of acquisition (in trial balance format). Date-of-acquisition fair values are also
displayed. On the consolidation working paper, eliminating entry (R) debits Select one: a. current
assets by $5 million. b. investment in subsidiary by $10 million. c. goodwill by $102 million. d.
noncurrent assets by $20 million.