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A parent company purchased an 80% interest in a subsidiary company on January 2, 2009 at a price in excess of book value, such that goodwill arises in the consolidation process. As a result of amortizing goodwill on the consolidated income statement, would an adjustment be required in the following sections of the consolidated statement of cash flows? A. No; No; Yes; No B. No; No; No; Yes C. No; Yes; No; No D. Yes; No; No; No

A parent company purchased an 80% interest in a subsidiary company on January 2, 2009 at a price in excess of book value, such that goodwill arises in the consolidation process. As a result of amortizing goodwill on the consolidated income statement, would an adjustment be required in the following sections of the consolidated statement of cash flows? A. No; No; Yes; No B. No; No; No; Yes C. No; Yes; No; No D. Yes; No; No; No

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A parent company purchased an 80% interest in a subsidiary company on January 2, 2009 at a price in excess of book value, such that goodwill arises in the consolidation process. As a result of amortizing goodwill on the consolidated income statement, would an adjustment be required in the following sections of the consolidated statement of cash flows?<Operating><Investing><Financing><No Adjustment>

A. No; No; Yes; No
B. No; No; No; Yes
C. No; Yes; No; No
D. Yes; No; No; No
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