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Problem 1: A subsidiary provides services to its parent during 2018. Cost of services provided is $300,000. The subsidiary charged the parent $750,000 for the services. Which statement is false concerning eliminating entry (I) related to these intercompany services?
a. Eliminating entry (I) removes the parent's service expense of $750,000b. Eliminating entry (I) removes the subsidiary's service revenue of $750,000c. Eliminating entry (I) does not affect consolidated profitd. Eliminating entry (I) removes the subsidiary's service expense of $300,000
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