4/

A parent company regularly sells merchandise to its 70%-owned subsidiary. Which of the following statements describes the computation of non-controlling interest share?

Select one:

a.The subsidiary's net income times 30%

b.The subsidiary's net income 30%) + unrealized profits in the beginning inventory - unrealized profits in the ending inventory

c.(The subsidiary's net income + unrealized profits in the beginning inventory - unrealized profits in the ending inventory) 30%

d.(The subsidiary's net income + unrealized profits in the ending inventory - unrealized profits in the beginning inventory) 30%

5/

Parent Corporation sells inventory items for $500,000 to Sub Corporation, its 80% owned subsidiary. The consolidated workpaper entry to eliminate the effect of this intercompany sale will include a debit to Sales for:

Select one:

a.$500,000

b.$400,000

c.The amount of unrealized profit in Subs ending inventory

d.80% of the amount of unrealized profit in Subs ending inventory