4) ABC Company Inc. reported net income attributable to the controling interest of $50,000 and net income attributable to the non-controlling interest of $10,000. What was consolidated net income? A) $10,000 B) $40,000 C) $50,000 D) $60,000 E) $70,000 5) When a company sells shares for cash in a subsidiary that is has control over for more than the investment book value, and it maintains control over the subsidiary, which of the following is false A) The book value of the investment sold is removed from the Investment in Subsidiary account B) The difference between book value and the sale price increases Additional Paid in Capital C) Cash received is equal to the selling price D) The difference between book value and the sale price is recorded as a Gain on Sale of Investment E) The parent company would still consolidate the subsidiary 6) When a company sells shares for cash in a subsidiary that is has control over for more than the investment book value, and it loses control over the subsidiary, which of the following is true A) The company records the investment at its book value less the book value of the shares sold B) The company would continue to consolidate the subsidiary as long as an ownership stake remained C) After the sale, the company would remeasure the investment to its fair value at the sale date and record a gain or loss F) After the sale, the company would remeasure the investment to its fair value at D) The company defers any gain or loss on the sale until the full investment is sold 7) In the presence of a non-controlling interest and during consolidation, what retained the sale date with a resulting change to Additional Paid in Capital earnings balance is eliminated in the consolidation process (assume a calendar year- end company): A) Parent retained earnings at January 1 B) Subsidiary retained earnings at January 1 C) Parent retained earnings at December 31 D) Subsidiary retained earnings at December 31 E) No retained earnings are eliminated in consolidation