accounting-A parent company acquires a subsidiary on January 1, 2014.

QUESTION

.A parent company acquires a subsidiary on January 1, 2014. The subsidiary’s equipment (five year remaining life, straight-line) is undervalued by $25 million at the date of acquisition. On the consolidation working paper prepared at December 31, 2016 (three years later), how are the eliminating entry (R) and (O) entry recorded (respectively)? (Points : 4)A) $ 5 million credit and $5 million creditB) $15 million debit and $5 million debitc) $15 million credit and $5 million creditd) $10 million debit and $5 million debit

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