The Consolidation Elimination Entry Required to Remove Any Dividends Received

Multiple Choice

The consolidation elimination entry required to remove any dividends received from a subsidiary prior to the preparation of consolidated financial statements (assuming that the parent uses the cost method to record its investment in the sub) would be:

A)
$$\begin{array} { | l | l | l | } \hline & \text { Debit } &\text {Credit } \\\hline \text { Equity method income - Parent } & \$ \$ \$ & \\\hline \text { Retained Earnings - Parent } & & \$ \$ \$ \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | l | } \hline & \text { Debit } &\text {Credit } \\\hline \text { Dividend Income - Subsidiary } & \$ \$ \$ & \\\hline \text { Investment in Subsidiary } & & \$ \$ \$ \$ \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | l | } \hline & \text { Debit} &\text {credit } \\\hline \text { Dividend Income - Parent }& \$ \$ \$ \$ & \\\hline \text { Dividends - Subsidiary } & & \$ \$ \$ \\\hline\end{array}$$