Desidero Corporation Acquired 100% of the Common Stock of Basile

Multiple Choice

Desidero Corporation acquired 100% of the common stock of Basile Company for $170,000.On the date of acquisition,Basile Company's stockholders' equity consisted of: Common Stock,$100,000 and Retained Earnings,$70,000.On the date of the acquisition,Desidero Company's stockholders' equity consisted of: Common Stock $500,000 and Retained Earnings $1,000,000.On the acquisition date,the elimination entry to be made on a worksheet to prepare a consolidated balance sheet would include a:

A) debit to Common Stock for $100,000.
B) debit to Investment in Basile for $170,000.
C) credit to Common Stock for $100,000.
D) credit to Retained Earnings for $70,000.