In years subsequent to the year a 90% owned subsidiary sells equipment to its parent company at a gain, the non-controlling interest is consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported net income: A. Minus the net amount of unrealized gain on the intercompany sale B. Plus intercompany gain considered realized in the current period. C. Plus the net amount of unrealized gain on the intercompany sales D. Minus intercompany gain considered realized in the current period
In years subsequent to the year a 90% owned subsidiary sells equipment to its parent company at a gain, the non-controlling interest is consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported net income: A. Minus the net amount of unrealized gain on the intercompany sale B. Plus intercompany gain considered realized in the current period. C. Plus the net amount of unrealized gain on the intercompany sales D. Minus intercompany gain considered realized in the current period
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In years subsequent to the year a 90% owned subsidiary sells equipment to its parent company at a gain, the non-controlling interest is consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported net income:
A. Minus the net amount of unrealized gain on the intercompany sale
B. Plus intercompany gain considered realized in the current period.
C. Plus the net amount of unrealized gain on the intercompany sales
D. Minus intercompany gain considered realized in the current period
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