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Question 3: In the equity method, if the subsidiary's net inco parent company owns 60% of the subsidiary, what is the pa $600,000 B) $400,000 C) $700,000 D) $800,000 Question

Question 3: In the equity method, if the subsidiary's net inco parent company owns 60% of the subsidiary, what is the pa $600,000 B) $400,000 C) $700,000 D) $800,000 Question

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 3: In the equity method, if the subsidiary's net income is $1,000,000, and the parent company owns 60% of the subsidiary, what is the parent's share of the net income? A) $600,000 B) $400,000 C) $700,000 D) $800,000 Question 4: In the fair value method, if the fair value adjustment for noncontrolling interests at the acquisition date is $50,000, what is the total fair value of noncontrolling interests? A) $25,000 B) $30,000 C) $50,000 D) S 75,000
Transcribed Image Text:Question 3: In the equity method, if the subsidiary's net income is $1,000,000, and the parent company owns 60% of the subsidiary, what is the parent's share of the net income? A) $600,000 B) $400,000 C) $700,000 D) $800,000 Question 4: In the fair value method, if the fair value adjustment for noncontrolling interests at the acquisition date is $50,000, what is the total fair value of noncontrolling interests? A) $25,000 B) $30,000 C) $50,000 D) S 75,000
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