Multiple-Choice Questions on Consolidated and Combined Financial Statements [AICPA Adapted] Select the correct answer for each of the following questions. 1. What is the theoretically preferred method of presenting a noncontrolling interest in a consolidated balance sheet? a As a separate item within the liablity section b. As a deduction from (contra to) goodwill from consolidation, if any. c. By means of notes or footnotes to the balance sheet. d. As a separate item within the stockholders' equity section. 2 Mr. Cord owns tour corporations. Combined financial statements are being prepared for these corporations, which have intercompany loans of $200,000 and intercompany profits of $500,000 What amount of these intercompany loans and profits should be included in the combined financial statements? Intercompany Loans Profits a. $200,000$ 0 b. $200,000 $500,000 d $0$500,000