In a business combination in which the parent company owris 80% of the subsidiary, which of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In a business combination in which the parent company owris 80% of the subsidiary, which of the following statements is true? OThe consolidation procedure is the same as in 100% ownership, but the equity and net income of the noncontrolling interest must be reported on the financial statements OThe combination is considered a statutory merger. OThe consolidation procedure is the same as in 100% ownership, but the equity and net income of the noncontrolling interest must be disclosed in the notes to the financial statements. O Only 80% of the subsidiary's net income and net assets are reported on the consolidated financial statements. OThe parent company is required to use the equity method to account for its investment in the subsidiary on its own books In a business combination in which the parent company owris 80% of the subsidiary, which of the following statements is true? OThe consolidation procedure is the same as in 100% ownership, but the equity and net income of the noncontrolling interest must be reported on the financial statements OThe combination is considered a statutory merger. OThe consolidation procedure is the same as in 100% ownership, but the equity and net income of the noncontrolling interest must be disclosed in the notes to the financial statements. O Only 80% of the subsidiary's net income and net assets are reported on the consolidated financial statements. OThe parent company is required to use the equity method to account for its investment in the subsidiary on its own books
Expert Answer:
Answer rating: 100% (QA)
ANSWER A The Consolidation procedure is the same as in 100 but the equity and net income of the nonc... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Goodwill recognized in a business combination must be allocated across a firms identified reporting units. For a consolidated entity with multiple reporting units, when is goodwill considered to be...
-
Explain how an acquirer is determined in a business combination for a 100%-owned subsidiary.
-
How is goodwill measured in a business combination with a noncontrolling interest?
-
According to the Mortgage Bankers Association, 10% of all home mortgage loans in California were in foreclosure in the fourth quarter of 2011. Assuming this rate holds, if you randomly pick 30...
-
The file S12_77.xlsx contains monthly time series data on corporate bond yields. These are averages of daily figures, and each is expressed as an annual rate. The variables are: Yield AAA: average...
-
Describe a conforming loan?
-
In January 2017, Susan and Clark Shipley, co-owners of Island Foods, Inc. began discussing the possibility of expanding their restaurant business from a single location in Glendale, Arizona, to two...
-
Gourmet Specialty Coffee Company (GSCC) is a distributor and processor of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for...
-
Tyrone owns his own house worth $500,000. He owes $300,000 on his 5% fixed-rate mortgage compound semi-annually that has four years remaining in its term and a $1,756 monthly payment. He also has the...
-
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: (a) The gross margin in 25% of sales (b) Actual and budgeted sales data: (c) Sales are 60%...
-
An 8.155 kg block was placed on an inclined plane (35 degrees with respect to the horizontal). A 150 N horizontal force is applied on the block. The coefficients of static and kinetic friction are...
-
Lopez Company has compiled the following data to use in preparing its budgeted balance sheet for next year Cash ? Accounts Receivable Supplies $ 10,300 4,400 Equipment 51,000 Accumulated Depreciation...
-
1- Are there any actions that would violate your conscience as a (future) healthcare practitioner and that you would refuse to perform or participate in? 2- According to the moral principle of...
-
Megan is a young Black woman who was hired at Mensa Corporation. Mensa Corporation is one of the leading cloud-based corporations in the United States that made twenty billion dollars in net profits...
-
Agency wants to fund $600,000 in Research & Development Leveraging on current low-interest environment, it plans to take a long-term bank loan of 10 years to finance the project. Prevailing bank rate...
-
Instructions Objective of this Assignment: To demonstrate on-line research, written communication and decision-making skills related to customer relationship management. Pre-Assignment Instructions:...
-
Applied Software has a $1,000 par value bond outstanding that pays 10 percent interest with annual payments. The current yield to maturity on such bonds in the market is 8 percent. Use Appendix B and...
-
A circular concrete shaft liner with Youngs modulus of 3.4 million psi, Poissons ratio of 0.25, unconfined compressive strength 3,500 psi and tensile strength 350 psi is loaded to the verge of...
-
The following Statement of Added Value (in millions of Brazilian reals) was presented in the 2009 annual report of Vale S.A., a Brazilian mineral products company. Required: a. Identify the external...
-
Geographic segment information can be used to determine how multinational a company is and the extent to which a company is diversified internationally. Refer to the geographic segment information...
-
What are the two models allowed for measuring property, plant, and equipment at dates subsequent to original acquisition?
-
Rachel Thomass trial balance balances as follows: Unfortunately, Rachel Thomass bookkeeper was not very experienced. The following transactions were incorrectly entered: (a) Purchase of a computer...
-
Which of the following balances extracted from the books on 31 December would be used as a basis for next years accounts? Equity employed 9,200 Trade receivables 700 Rent and rates 1,000 Trade...
-
There is not just one profit there are hundreds of profits. Do you agree with this statement, taking into account the subjectivity inherent in calculating profit?
Study smarter with the SolutionInn App