If Subsidiary Net Income Is $15,000 for Company S and Parent

question 2

Multiple Choice

If subsidiary net income is $15,000 for Company S and parent Company P has a 75% interest in subsidiary Company S, what would be the elimination entry for the current-year equity income of Company S:

• A)​Debit Investment in Company S $15,000 and credit Subsidiary Income $15,000
• B)​Debit Subsidiary Income $11,250 and credit Investment in Company S $11,250
• C)​Debit Subsidiary Income $15,000 and credit Subsidiary Income $15,000
• D)​Debit Investment in Company S $11,250 and credit Subsidiary Income $11,250

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Definitions:

Forensic Psychologist

A professional who applies psychological principles to legal matters, including assessing mental health, criminal behavior, and providing expert testimony.

Nature-Nurture Issue

The discussion around the comparative significance of a person's natural characteristics ("nature") versus their life experiences ("nurture") in shaping or influencing the variations in physical and psychological characteristics.

Heredity

The passing of genetic traits from parents to offspring.

Environment

The surrounding conditions, including natural and man-made elements, where an organism lives, which can influence its development and behavior.