Using the above information,the workpaper entries for the Equity Method – Year of Acquisition are as follows: Equity Method- Year of Acquisition the following workpaper entries are made: 1 Eliminate (parents share) of current year subsidiary income (Equity in Subsidiary Income) REAL Entry 2010 Debit Investment in Subsidiary $ 200,000 200,000 Debit $200,000 Equity in Sub Income Investment in Subsidiary $ 200,000 2 Eliminate (parents share) of current year subsidiary dividends. REAL Entry 2010 Credit Cash 40,000 Investment in Subsidiary 40,000 Workpaper Ent Investment in Subsidiary Debit 0,000 Dividend Declared-Subsidiary 40,000 03-True/False The entry to eliminate subsidiary dividends (above) will reduce the subsidiary dividends to zero? Explain your answer.


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