On January 1,2014,Pauline Company acquired 90% of Stephen Company at a cost of $90,000.On January 1,2014,Stephen Company acquired 10% of Pauline Company at a cost of $10,000. On January 1,2014,the following data is available:

\begin{array}{llll} \underline{\text {Stephen Company}}& &\underline{\text {Pauline Company}}\\\text { Common Stock } & \$ 50,000 & \text { Common Stock } & \$ 50,000 \\\text { Retained Earnings } & \$ 50,000 & \text { Retained Earnings } & \$ 50,000 \\\text { Assets fair value } & \$ 100,000 & \text { Assets fair value } & \$ 100,000 \\\text { Assets book value } & \$ 100,000 & \text { Assets book value } & \$ 100,000 \\\text { L.iabilities } & \$ 0 & \text { L.iabilities } & \$ 0\end{array}

At December 31,2014,the following data is available:
$On January 1,2014,Pauline Company acquired 90% of Stephen Company at a cost of $90,000.On January 1,2014,Stephen Company acquired 10% of Pauline Company at a cost of $10,000. On January 1,2014,the following data is available: \begin{array}{llll} \underline{\text {Stephen Company}}& &\underline{\text {Pauline Company}}\\ \text { Common Stock } & \$ 50,000 & \text { Common Stock } & \$ 50,000 \\ \text { Retained Earnings } & \$ 50,000 & \text { Retained Earnings } & \$ 50,000 \\ \text { Assets fair value } & \$ 100,000 & \text { Assets fair value } & \$ 100,000 \\ \text { Assets book value } & \$ 100,000 & \text { Assets book value } & \$ 100,000 \\ \text { L.iabilities } & \$ 0 & \text { L.iabilities } & \$ 0 \end{array} At December 31,2014,the following data is available: On Pauline Books: On Stephen Books: Assuming the treasury stock method is used,what elimination entry is needed for the Investment in Pauline at December 31,2014? A) \begin{array} { | c | c | } \hline \text { Retained earnings } & 5,000 \\ \hline \text { Common stock } & 5,000 \\ \hline \text { Investment in Pauline } &10,000 \\ \hline \end{array} B) \begin{array}{|c|c|} \hline\text { Investment in Stephen } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array} C) \begin{array}{|c|l|} \hline\text { Income from Pauline } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array} D) \begin{array}{|l|c|} \hline\text { Treasury stock } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array}$ On Pauline Books:
$On January 1,2014,Pauline Company acquired 90% of Stephen Company at a cost of $90,000.On January 1,2014,Stephen Company acquired 10% of Pauline Company at a cost of $10,000. On January 1,2014,the following data is available: \begin{array}{llll} \underline{\text {Stephen Company}}& &\underline{\text {Pauline Company}}\\ \text { Common Stock } & \$ 50,000 & \text { Common Stock } & \$ 50,000 \\ \text { Retained Earnings } & \$ 50,000 & \text { Retained Earnings } & \$ 50,000 \\ \text { Assets fair value } & \$ 100,000 & \text { Assets fair value } & \$ 100,000 \\ \text { Assets book value } & \$ 100,000 & \text { Assets book value } & \$ 100,000 \\ \text { L.iabilities } & \$ 0 & \text { L.iabilities } & \$ 0 \end{array} At December 31,2014,the following data is available: On Pauline Books: On Stephen Books: Assuming the treasury stock method is used,what elimination entry is needed for the Investment in Pauline at December 31,2014? A) \begin{array} { | c | c | } \hline \text { Retained earnings } & 5,000 \\ \hline \text { Common stock } & 5,000 \\ \hline \text { Investment in Pauline } &10,000 \\ \hline \end{array} B) \begin{array}{|c|c|} \hline\text { Investment in Stephen } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array} C) \begin{array}{|c|l|} \hline\text { Income from Pauline } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array} D) \begin{array}{|l|c|} \hline\text { Treasury stock } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array}$ On Stephen Books:
$On January 1,2014,Pauline Company acquired 90% of Stephen Company at a cost of $90,000.On January 1,2014,Stephen Company acquired 10% of Pauline Company at a cost of $10,000. On January 1,2014,the following data is available: \begin{array}{llll} \underline{\text {Stephen Company}}& &\underline{\text {Pauline Company}}\\ \text { Common Stock } & \$ 50,000 & \text { Common Stock } & \$ 50,000 \\ \text { Retained Earnings } & \$ 50,000 & \text { Retained Earnings } & \$ 50,000 \\ \text { Assets fair value } & \$ 100,000 & \text { Assets fair value } & \$ 100,000 \\ \text { Assets book value } & \$ 100,000 & \text { Assets book value } & \$ 100,000 \\ \text { L.iabilities } & \$ 0 & \text { L.iabilities } & \$ 0 \end{array} At December 31,2014,the following data is available: On Pauline Books: On Stephen Books: Assuming the treasury stock method is used,what elimination entry is needed for the Investment in Pauline at December 31,2014? A) \begin{array} { | c | c | } \hline \text { Retained earnings } & 5,000 \\ \hline \text { Common stock } & 5,000 \\ \hline \text { Investment in Pauline } &10,000 \\ \hline \end{array} B) \begin{array}{|c|c|} \hline\text { Investment in Stephen } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array} C) \begin{array}{|c|l|} \hline\text { Income from Pauline } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array} D) \begin{array}{|l|c|} \hline\text { Treasury stock } & 10,000 \\ \hline \text { Investment in Pauline } & 10,000 \\ \hline \end{array}$ Assuming the treasury stock method is used,what elimination entry is needed for the Investment in Pauline at December 31,2014?
A)

\begin{array} { | c | c | } \hline \text { Retained earnings } & 5,000 \\\hline \text { Common stock } & 5,000 \\\hline \text { Investment in Pauline } &10,000 \\\hline\end{array}

\begin{array}{|c|c|}\hline\text { Investment in Stephen } & 10,000 \\\hline \text { Investment in Pauline } & 10,000 \\\hline\end{array}

\begin{array}{|c|l|}\hline\text { Income from Pauline } & 10,000 \\\hline \text { Investment in Pauline } & 10,000 \\\hline\end{array}

\begin{array}{|l|c|}\hline\text { Treasury stock } & 10,000 \\\hline \text { Investment in Pauline } & 10,000 \\\hline\end{array}

Pallet Corporation Owns 80% of Adelt Corporation and Adelt Owns

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