20. In 2000, Middle, Inc. acquired 60 percent of Topper Company's common stock at a cost equal to Middle's share of Topper's nbv. For 2001, Middle and Topper reported the following: Middle $550,000 Topper Separate Income (from own operations) Net Income Separate Other Comprehensive Income (OCI) OCI from subsidiary $310,000 25,000 35,000 15,000 For 2001, the amounts to be reported in the consolidated financial statements are: Total Total Consolidated Consolidated Comprehensive Net Income Income A) $706,000 $756,000 B) $736,000 $786,000 C) $786,000 $920,000 D) $860,000 $920,000 d Note: from the above, you may assume that total consolidated comprehensive income" includes total consolidated net income plus total consolidated OCI. To get P's % of total consolidated comprehensive income, subtract the MI% of consolidated net income and subtract the MI% of consolidated OCI. Thus: 860 = 550 + 310; 920 = 550 + 310 + 35 + 25. P's % of total consolidated comprehensive income (not asked for above) = 920 - 4(310) -4(25). 21. Which of the following statements is correct regarding the preparation of consolidated financial statements for a period after one in which a subsidiary has declared a common stock dividend? A) The stock dividend may be ignored because it has no impact on the subsidiary's total stockholders' equity. B) The stock dividend will result in a change in the investment elimination entry even though there is no change in the balance in the investment account. C) All stockholders' equity balances of the subsidiary must be restated as if there had been no stock dividend. D) The entry to eliminate the investment account and establish the noncontrolling interest in the workpaper will be the same as if there had been no stock dividend. b. Note that d is incorrect because S's stock dividends in prior periods will alter the RE and CS amounts in WP Elimination #3 (same reason why b is correct). I do not really like this question very much