A Parent Owns 100% of a Subsidiary Company

Multiple Choice

A parent owns 100% of a subsidiary company. One month before its year-end date of March 31, 2031, the parent loaned the subsidiary $120,000. The subsidiary paid back $20,000 in January 2014. In the preparation of the consolidated balance sheet for March 31, 2014, What amount of this loan should be eliminated in the consolidated financial statements?

A) $0
B) $20,000
C) $ 100,000
D) $120,000