Question 29

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Marked out of 1.00

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S Co an 80%-owned subsidiary of P Co,sold inventory items to its parent at a $48,000 loss in 2014. P resold one third of this inventory to outside entities. S reported net income of $200,000 for 2014.Noncontrolling interest share of consolidated net income that will appear in the income statement for 2014 is

Select one:

a. $46,400

b. $43,200

c. $36,800

d. $40,000

Question 30

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A gain or loss on sales downstream from parent to subsidiary is initially included in parent income and must be 100% eliminated

Select one:

True

False