1 Consolidated Net Income would be a Higher if the parent chooses to use Equity Method rather than the Cost Method b Lower if the parent chooses to use Equity Method rather than the Cost Method c The same under both the Cost and Equity Methods 2 Consolidated retained earnings include a consolidated net income less any dividends declared by either the parent or the subsidiary b consolidated net income less any dividends declared by the parent only c the parent's share of consolidated net income less any dividends declared by the parent 3 HRN Enterprises Inc (HRN) purchases 80 of the outstanding voting shares of NHR Inc on January 1, 2018 HRN is using the fair value enterprise (FVE) consolidation method On that date, which of the following statements pertaining to the non controlling interest (NCI) is TRUE a HRN's non controlling interest (NCI) account will include 20 of the book value of NHR's net assets, 20 of the fair value excess and 20 of the goodwill b HRN's non controlling interest (NCI) account will include 20 of the acquisition differential on the date of acquisition c HRN's non controlling interest (NCI) account will include 20 of the book value of NHR's net assets and 20 of the fair value excess

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1  Consolidated Net Income would be  a  Higher if the parent chooses to use Equity Method rather than the Cost Method  b  Lower if the parent chooses to use Equity Method rather than the Cost Method  c  The same under both the Cost and Equity Methods  2  Consolidated retained earnings include  a  consolidated net income less any dividends declared by either the parent or the subsidiary  b  consolidated net income less any dividends declared by the parent only  c  the parent's share of consolidated net income less any dividends declared by the parent  3  HRN Enterprises Inc  (HRN) purchases 80  of the outstanding voting shares of NHR Inc  on January 1, 2018  HRN is using the fair value enterprise (FVE) consolidation method  On that date, which of the following statements pertaining to the non controlling interest (NCI) is TRUE  a  HRN's non controlling interest (NCI) account will include 20  of the book value of NHR's net assets, 20  of the fair value excess and 20  of the goodwill  b  HRN's non controlling interest (NCI) account will include 20  of the acquisition differential on the date of acquisition  c  HRN's non controlling interest (NCI) account will include 20  of the book value of NHR's net assets and 20  of the fair value excess

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1. Consolidated Net Income would be: a. Higher if the parent chooses to use Equity Method rather than the Cost Method. b. Lower if the

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