6. Consolidated financial statements are designed to provide: informative information to all shareholders. the results of operations, cash flow, and the balance sheet as if the parent and subsidiary were a single entity a. b. c. the results of operations, cash flow, and the balance sheet in an understandable and d. subsidiary information for the subsidiary shareholders manner for creditors 7. ASSOuns Sales Cost of Goods Sold Gross Profit Selling & Admin. Expenses Net Income $500,000 230,000 $270,000 120,000 5300,000 70.920 $130,000 5 30.000 Dividends paid 50,000 10,000 Assuming that the investor owns 70% of Investee, what is the amount that will be recorded as Net income for the Controlling Interest? a. $164,000 b. $180,000 c.$178,000 d. $171,000 ABC acquired 100% of XYZ Company. The following book and fair values pertaining to XYZ Company are available: $300,000 $600,000 Current assets Land and building Machinery Goodwill Bonds Payable Common Stock ($1 par) Additional Paid-in Capital 900,000 600,000 600,000 500,000 100,000 200,000 150,000 400,000 $750,000 235,000 Retained Earnings