PLEASE ANSWER ASAPP

Question 5 (2.5 points) Which of the following methods does NOT call for the elimination of ALL intercompany profits? Fair value enterprise method Partial goodwill method Proportionate consolidation method Identifiable net asset method Question 7 (2.5 points) If a parent company borrows money at an interest rate of six percent from its subsidiary, what effect (if any) will this have on the non-controlling interest? This would have no effect on the non-controlling interest. The subsidiary would book its pro-rata share of any interest revenue. The non-controlling interest balance would be reduced by the amount of the loan. The subsidiary would record any interest revenue as an extraordinary gain. Question 8 (2.5 points) Under the Equity Method, which of the following statements is TRUE? The parent's investment in the subsidiary is recorded at cost and reduced by any dividends received from the subsidiary. The parent's investment in the subsidiary is recorded at cost, and only changed thereafter if there has been a permanent impairment in the value of the investment. The parent records its pro rata share of the subsidiary's retained earnings balance as an increase to the investment account or reduces the investment account by its share of any accumulated deficit of the subsidiary. The parent records its pro rata share of the subsidiary's post-acquisition income as an increase to the investment account and reduces the investment account with its share of the dividends declared by the subsidiary as well as any post- acquistion losses