the years subsequent to the year of sale of a 90% owned subsidiary who sells equipment to its parent company at a gain, the non-controlling interest in consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported income: A. After adding intercompany gain considered realized in that period. B. After adding the intercompany gain on sales C. After deducting the intercompany gain on sales D. After deducting intercompany gain considered realized in t
the years subsequent to the year of sale of a 90% owned subsidiary who sells equipment to its parent company at a gain, the non-controlling interest in consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported income: A. After adding intercompany gain considered realized in that period. B. After adding the intercompany gain on sales C. After deducting the intercompany gain on sales D. After deducting intercompany gain considered realized in t
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the years subsequent to the year of sale of a 90% owned subsidiary who sells equipment to its parent company at a gain, the non-controlling interest in consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported income:
A. After adding intercompany gain considered realized in that period.
B. After adding the intercompany gain on sales
C. After deducting the intercompany gain on sales
D. After deducting intercompany gain considered realized in that period.
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