A parent owns 80 of its subsidiary The subsidiary sells merchandise to its parent at a 25 markup on cost The parent's ending inventory includes $825,000 purchased from the subsidiary The parent's beginning inventory includes $750,000 purchased from the subsidiary What is the effect of the above on the noncontrolling interest in net income for the current year A $ 3,000 increase B $15,000 increase C $ 3,000 decrease D No effect You are a U S parent and you have a subsidiary in Italy The subsidiary's functional currency is the euro and it maintains its accounts in euros When you consolidate the subsidiary, you will A Put the subsidiary's trial balance, in euros, on the working paper and add the euro balances to the parent's U S dollar balances B Remeasure the subsidiary's trial balance into U S dollars and then do the consolidation eliminating entries C Translate the subsidiary's trial balance into euros, then remeasure it into U S dollars, and then do the consolidation eliminating entries D Translate the subsidiary's trial balance into U S dollars and then do the consolidation eliminating entries Identifiable intangible assets with a fair value of $100 million and a 5 year life were recognized in an acquisition occurring on June 30, 2019 The intangible assets were not impaired in fiscal 2020 It is now June 30, 2021, the end of the parent's fiscal year Impairment testing reveals that total expected undiscounted future cash inflows for the intangible assets are $65, and total expected discounted future cash inflows are $35 What is the impairment loss for the intangible assets for fiscal 2021, following IFRS A None B $25 million C $10 million D $15 million

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A parent owns 80% of its subsidiary. The subsidiary sells merchandise to its parent at a 25% markup on cost. The parent's ending inventory includes

A parent owns 80% of its subsidiary. The subsidiary sells merchandise to its parent at a 25% markup on cost. The parent's ending inventory includes $825,000 purchased from the subsidiary. The parent's beginning inventory includes $750,000 purchased from the subsidiary. What is the effect of the above on the noncontrolling interest in net income for the current year?

	A.	$ 3,000 increase
	B.	$15,000 increase
	C.	$ 3,000 decrease
	D.	No effect

You are a U.S. parent and you have a subsidiary in Italy. The subsidiary's functional currency is the euro and it maintains its accounts in euros. When you consolidate the subsidiary, you will:

	A.	Put the subsidiary's trial balance, in euros, on the working paper and add the euro balances to the parent's U.S. dollar balances
	B.	Remeasure the subsidiary's trial balance into U.S. dollars and then do the consolidation eliminating entries
	C.	Translate the subsidiary's trial balance into euros, then remeasure it into U.S. dollars, and then do the consolidation eliminating entries
	D.	Translate the subsidiary's trial balance into U.S. dollars and then do the consolidation eliminating entries

Identifiable intangible assets with a fair value of $100 million and a 5-year life were recognized in an acquisition occurring on June 30, 2019. The intangible assets were not impaired in fiscal 2020. It is now June 30, 2021, the end of the parent's fiscal year. Impairment testing reveals that total expected undiscounted future cash inflows for the intangible assets are $65, and total expected discounted future cash inflows are $35. What is the impairment loss for the intangible assets for fiscal 2021, following IFRS?