Short Answer
The following data pertains to questions
Parent and Sub Inc had the following balance sheets on July 31,2007: 
The Net Incomes for Parent and Sub Inc for the year ended July 31,2007 were $120,000 and $60,000 respectively.
-Assuming that Parent Inc.purchased 80% of Sub's voting shares on the date of acquisition for $180,000,what would be the journal entry to clear out the Investment in Sub Inc.account assuming any Acquisition differential is to be allocated to the identifiable assets and liabilities of Sub Inc if the Proprietary Method were used? 
Correct Answer:
Verified
Correct Answer:
Verified
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