On January 1,20X8,Ramon Corporation Acquired 75 Percent of Tester Company's

Multiple Choice

On January 1,20X8,Ramon Corporation acquired 75 percent of Tester Company's voting common stock for $300,000.At the time of the combination,Tester reported common stock outstanding of $200,000 and retained earnings of $150,000,and the fair value of the noncontrolling interest was $100,000.The book value of Tester's net assets approximated market value except for patents that had a market value of $50,000 more than their book value.The patents had a remaining economic life of ten years at the date of the business combination.Tester reported net income of $40,000 and paid dividends of $10,000 during 20X8.
-Based on the preceding information,which of the following is an eliminating entry needed to prepare a full set of consolidated financial statements at December 31,20X8?

A) Choice A
B) Choice B
C) Choice C
D) Choice D