The non-controlling interest in net assets of a partially owned subsidiary is: O Decreased by share in impairment loss in goodwill if proportionate method of measuring NCI is used Decreased by amortization of differences between fair values and carrying values of the subsidiary's net assets net assets when carrying values are greater than fair values. O Increased by the NCI's share of subsidiary's dividends and decreased by the NCI's share of subsidiary's adjusted net income O Decreased by the NCI's share of subsidiary's dividends and increased by the NCI's share of subsidiary's adjusted net income

The non-controlling interest in net assets of a partially owned subsidiary is: O Decreased by share in impairment loss in goodwill if proportionate method of measuring NCI is used Decreased by amortization of differences between fair values and carrying values of the subsidiary's net assets net assets when carrying values are greater than fair values. O Increased by the NCI's share of subsidiary's dividends and decreased by the NCI's share of subsidiary's adjusted net income O Decreased by the NCI's share of subsidiary's dividends and increased by the NCI's share of subsidiary's adjusted net income

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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S1: In a business combination resulting a parent company-wholly ownedsubsidiary relationship, goodwill developed in the working paper elimination isattributed in its entirety to the parent. S2: On the date of business combinationof a parent company and its partially owned subsidiary, under the computationmethod used in full goodwill method, the amount assigned to minority interest innest assets of subsidiary is based on the cost of the parent company’sinvestment in the subsidiary’s common stock. A. Both statements are correctB. Only S1 is correctC. Only S2 is correctD. Both statements are incorrect
In a recent acquisition, the consolidated value of a subsidiary's assets exceeded the basis appropriate for tax purposes. How does this difference affect the consolidated balance sheet?
Statement 1: Consolidated inventory on the statement of financial position is recorded at fair market value to the affiliated group. Statement 2: If the intercompany seller is the subsidiary, it is the subsidiary's income that needs adjustment. Which statement/s is TRUE?
Statement 1: Non-controlling interest in subsidiary's net income is never affected by a gain on the transfer of depreciable asset. Statement 2: When change in the estimated life of depreciable assests occurs at the time of an intercompany sales, the treatment is different than if the change occured while the asset remained on the books of the selling affiliate . Which statement/s is TRUE?
50. Analyze the following: I – When a component of an entity was discontinued during the year, the component's operating loss of the current period should be included in income statement as part of revenue and expenses. II – If the fair value less cost of disposal is lower than the carrying amount of a non-current asset classified as held for sale, the difference is accounted for as an impairment loss. III – The effect of recording a 100% share dividend would be to leave working capital unaffected, decrease earnings per share and increase book value per share. Given these, we can conclude that: Group of answer choices Only statement II is false. Only statements I and III are true. Only statements I and II are true. Statement III is false.
I need answers for part b
Which is true regarding the Investment in Subsidiary Stock account? [a] It is accounted for in the parent’s books and is included as non – current assets in the parent’s balance sheet [b] It is not included in the consolidated balance sheet of parent and subsidiary [c] It is decreased and or increased by the difference between fair value and book value of net assets of the subsidiary for consolidation purposes. [d] All of the above