Entity theory is one of the two prominent theories of consolidation. Required: Under entity theory a. How

Question:

Entity theory is one of the two prominent theories of consolidation.

Required:

Under entity theory

a. How would the value of goodwill be determined? Explain why.

b. How would the initial value of noncontrolling interest be determined? Explain why.

c. How would a company report non-controlling interest income in the consolidated income statement? Explain why.

d. Where would a company report non-controlling interest in the consolidated balance sheet? Explain why.

Goodwill
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