REFERENCE: 03-06
Kaye Company Acquired 100% of Fiore Company on January

REFERENCE: 03-06
Kaye Company acquired 100% of Fiore Company on January 1,2018.Kaye paid $1,000 excess consideration over book value,which is being amortized at $20 per year.There was no goodwill in the combination.Fiore reported net income of $400 in 2018 and paid dividends of $100.
-Assume the partial equity method is used.In the years following acquisition,what additional worksheet entry must be made for consolidation purposes,but is not required for the equity method?
A.
$\begin{array}{llr} \text { Retanned earnungs } &20\\ \text { Investment in Fiore } &&20\\\end{array}$


B.
$\begin{array}{llr} \text {Investment in Fiore } &20\\ \text {Retanned earnungs } &&20\\\end{array}$


C.
$\begin{array}{llr} \text { Expenses} &20\\ \text { Investment in Fiore } &&20\\\end{array}$

D.
$\begin{array}{llr} \text { Expenses } &20\\ \text { Retanned earnungs } &&20\\\end{array}$

E.
$\begin{array}{llr} \text { Retanned earnungs } &20\\ \text { Additional paid-in capital } &&20\\\end{array}$

A) Entry A.
B) Entry B.
C) Entry C.
D) Entry D.
E) Entry E.