18) A company with convertible bonds outstanding will need to adjust he denominator of the EPS equation. The adjustment will consist of the A) number of bonds in the the debt issue B) conversion ratio times the number of bonds outstanding net of taxes C) conversion ratio times the number of bonds outstanding D) number of bonds issued during the current year Choose the one best answer. 1. Which statement is true regarding consolidation when there is a noncontrolling interest? A. Noncontrolling interest should not be included in the consolidated financial statements because these outside owners do not have sbares in the parent company B. Only a proportion of the subsidiary should be included in the consolidated financial statements because the parent company has less than 100% of the subsidiary's shares. C. Consolidated financial statements should be picpared only if the parent company and the D. A subsidiary should be included in its entirety in the consolidated financial statements Question 2 and 3 are based on the following information. Parent Co. acquired 80% of Subsidiary Co. for S300.000 on January 1, 2012 when Subsidary's book value was $280,000. The Subsidairy stock was not actively traded. On the date of Subsidiary had equipment (with a ten-year life) that was undervalued in the financial records by $95,000. One year later, the following selected figures were reported by the two companies Iders' equity accounts have been omitted). Additionally, no dividends have been paid. Parent Book value Subsidiary Book value 180,000 120,000 110,000 (30,000) (350,000) 250,000 Current assets and investment Buildings Equipment Liabilities Revenues Expenses 640,000 150,000 200,000 (120,000) (900,000) 600,000 Not given Investment income 2. What is consolidated net income for 2012 attributable to noncontrolling interest? A. $16,100. B. $20,000. C. $18,100. D. $1,000 3. What is the ending balance of the Noncontrolling Interest as of Dec 31, 2012? A. $93.100. B. $76,000. C. $96,000. D. $77.000