200,000 200,000 La Slock .. b. Cash (current assets) Interest Income (closed to retained earnings) ...... e. Current Assots ($a nn. Plant and . nn no + $20,000) Tot 20,000 ..... 20,000 $ 3,220,000 8.000.000 - 133 - The sales of a parent company and its subsidiary for the year 2013 amounted to $200,000 and $50,000 respectively. $80,000 of the parent company's were to its 90% owned subsidiary. At what amount should sales be reported in their consolidated income statement for the aforesaid year? A. $170,000. $200,000 $245,000 $250,000. 5. The Stockholders' Equity of a subsidiary company amounts to $200,000 as of December 31, 2013. The parent company owns 70% of the subsidiary which it acquired several years ago without paying for any differential. The parent company's inventories included unconfirmed profits on purchases from its subsidiary of $10,000 on December 31, 2012 and $15,000 on December 31, 2013. What is the balance of the parent company's investment account in its subsidiary as of December 31, 2013 under the Equity Method ? A. $125,000. $129,500. C. $136,500 $140,000. Affiliated (Intercompany) sales of current assets between the combining entities of a business combination are to be eliminated in A. The books of the selling entity. The books of the purchasing party. C. The books of the parent company. D. None of the above