Business, 06.05.2020 17:03, minideeri

At the beginning of 2018, a parent company sold a patent, carried on its books at $4,000,000, to its subsidiary for $3,000,000. The patent had a remaining life of five years and straight-line amortization is used. It is now the end of 2020, and the subsidiary still owns the patent. On the 2020 consolidation working paper, eliminations (I): - increase the patent by $800,000. - reduce the parent's investment account by $600,000. - increase the subsidiary's beginning retained earnings by $200,000. - reduce amortization expense by $400,000.

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At the beginning of 2018, a parent company sold a patent, carried on its books at $4,000,000, to its...