Which of the following statements is true regarding the subsidiary's investment in its parent's common stock?
A. The consolidation worksheet entry to eliminate the subsidiary's investment in parent's common stock is debited to additional paid-in capital.
B. The investment in parent company's common stock is not eliminated in consolidation.
C. The consolidation worksheet entry to eliminate the subsidiary's investment in parent's common stock is debited to treasury stock.
D. The consolidation worksheet entry to eliminate the subsidiary's investment in parent's common stock is debited to retained earnings.
E. All of the parent company's common stock is eliminated.
Answer: C
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