1.The Consolidated Statement of Cash Flows is prepared from the separate statements of cash flows from the parent and the subsidiary.

True or False?

2.Parent Co. acquires 70% of the common stock of Sub Co., and 60% of Sub's preferred stock. The noon-cumulative preferred stock pays a 8% annual dividend. How is the noncontrolling interests's share of subsidiary income computed?.

a) 40% of the Subsidiary's preferred dividends

b) 40% of the Subsidiary's preferred dividends, plus 30% of Sub's total calculated income.

c) 40% of the Sub's preferred dividends, plus 30% of the Sub's (Income - Preferred dividends)

d) 30% of Sub's total calculated income.