Question: When a company applies the initial value method in accounting for its investment in a subsidiary and the subsidiary reports income less than dividends paid,

When a company applies the initial value method in accounting for its investment in a subsidiary and the subsidiary reports income less than dividends paid, what entry would be made to convert to full-accrual totals in a consolidation worksheet for the second year? A) Retained earnings Investment in subsidiary B) Investment in subsidiary Retained earnings C) Investment in subsidiary Equity in subsidiary's income D) Investment in subsidiary Additional paid-in capital E) Retained earnings Additional paid-in capital Multiple Choice Entry A Entry B Entry C Entry D

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