On January 1, year 1 Rain acquires 90 of the stock in Snow in a transaction properly accounted for as a business combination Items 1 through 6 below refer to accounts that may or may not be included in Rain and Snow's consolidated financial statements Click on the associated cell and select from the list below the treatment for those amounts to be reported in Rain's consolidated financial statements for the year ended December 31, year 2 Both Rain and Snow paid dividends to investors Ignore income tax considerations Questions Answer Choices 1 Cash Sum of amounts on Rain and Snow's separate unconsolidated financial statements Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either Same as amount for Rain only Same as amount for Snow only Eliminated entirely in consolidation Shown in consolidated financial statements but not in separate unconsolidated financial statements Neither in consolidated nor in separate unconsolidated financial statements 2 Investment in Subsidiary Sum of amounts on Rain and Snow's separate unconsolidated financial statements Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either Same as amount for Rain only Same as amount for Snow only Eliminated entirely in consolidation Shown in consolidated financial statements but not in separate unconsolidated financial statements Neither in consolidated nor in separate unconsolidated financial statements 3 Noncontrolling Interest Sum of amounts on Rain and Snow's separate unconsolidated financial statements Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either Same as amount for Rain only Same as amount for Snow only Eliminated entirely in consolidation Shown in consolidated financial statements but not in separate unconsolidated financial statements Neither in consolidated nor in separate unconsolidated financial statements 4 Common Stock Sum of amounts on Rain and Snow's separate unconsolidated financial statements Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either Same as amount for Rain only Same as amount for Snow only Eliminated entirely in consolidation Shown in consolidated financial statements but not in separate unconsolidated financial statements Neither in consolidated nor in separate unconsolidated financial statements 5 Beginning Retained Earnings Sum of amounts on Rain and Snow's separate unconsolidated financial statements Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either Same as amount for Rain only Same as amount for Snow only Eliminated entirely in consolidation Shown in consolidated financial statements but not in separate unconsolidated financial statements Neither in consolidated nor in separate unconsolidated financial statements 6 Dividends Paid Sum of amounts on Rain and Snow's separate unconsolidated financial statements Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either Same as amount for Rain only Same as amount for Snow only Eliminated entirely in consolidation Shown in consolidated financial statements but not in separate unconsolidated financial statements Neither in consolidated nor in separate unconsolidated financial statements

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

On January 1, year 1 Rain acquires 90% of the stock in Snow in a transaction properly accounted for as a business combination. Items 1

On January 1, year 1 Rain acquires 90% of the stock in Snow in a transaction properly accounted for as a business combination. Items 1 through 6 below refer to accounts that may or may not be included in Rain and Snow's consolidated financial statements. Click on the associated cell and select from the list below the treatment for those amounts to be reported in Rain's consolidated financial statements for the year ended December 31, year 2. Both Rain and Snow paid dividends to investors. Ignore income tax considerations.

Questions:	Answer Choices:
1. Cash	Sum of amounts on Rain and Snow's separate unconsolidated financial statements. Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either. Same as amount for Rain only. Same as amount for Snow only. Eliminated entirely in consolidation. Shown in consolidated financial statements but not in separate unconsolidated financial statements. Neither in consolidated nor in separate unconsolidated financial statements.
2. Investment in Subsidiary	Sum of amounts on Rain and Snow's separate unconsolidated financial statements. Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either. Same as amount for Rain only. Same as amount for Snow only. Eliminated entirely in consolidation. Shown in consolidated financial statements but not in separate unconsolidated financial statements. Neither in consolidated nor in separate unconsolidated financial statements.
3. Noncontrolling Interest	Sum of amounts on Rain and Snow's separate unconsolidated financial statements. Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either. Same as amount for Rain only. Same as amount for Snow only. Eliminated entirely in consolidation. Shown in consolidated financial statements but not in separate unconsolidated financial statements. Neither in consolidated nor in separate unconsolidated financial statements.
4. Common Stock	Sum of amounts on Rain and Snow's separate unconsolidated financial statements. Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either. Same as amount for Rain only. Same as amount for Snow only. Eliminated entirely in consolidation. Shown in consolidated financial statements but not in separate unconsolidated financial statements. Neither in consolidated nor in separate unconsolidated financial statements.
5. Beginning Retained Earnings	Sum of amounts on Rain and Snow's separate unconsolidated financial statements. Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either. Same as amount for Rain only. Same as amount for Snow only. Eliminated entirely in consolidation. Shown in consolidated financial statements but not in separate unconsolidated financial statements. Neither in consolidated nor in separate unconsolidated financial statements.
6. Dividends Paid	Sum of amounts on Rain and Snow's separate unconsolidated financial statements. Less than the sum of amounts on Rain and Snow's separate unconsolidated financial statements but not the same as the amount on either. Same as amount for Rain only. Same as amount for Snow only. Eliminated entirely in consolidation. Shown in consolidated financial statements but not in separate unconsolidated financial statements. Neither in consolidated nor in separate unconsolidated financial statements.