Consolidated Financial Statements F09-17b

What is the eliminating entry when a parent owns 100% of the subsidiary?

DR: Common stock (of subsidiary)

Additional Paid-In-Cap (of subsidiary)

Retained Earnings (of subsidiary)

Identifiable Assets (of subsidiary to FC, as needed)

Goodwill (if Investment cost > FV of subsidiary’s NA)

CR: Identifiable Liabilities (of subsidiary to FV, as needed)

Investment in subsidiary (from parent’s books)