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The consolidated financial statements of a parent and its 80%-owned subsidiary reports income to the noncontrolling interest A. On the consolidated balance sheet, as a

  1. The consolidated financial statements of a parent and its 80%-owned subsidiary reports income to the noncontrolling interest
A.

On the consolidated balance sheet, as a liability.

B.

On the consolidated income statement, as a deduction from consolidated income.

C.

On the consolidated income statement, as an expense.

D.

On the consolidated balance sheet, as one of the equity accounts.

Seaton Company is a variable interest entity. Pracker Company has no equity ownership in Seaton, but is its primary beneficiary. Pracker and Seaton were not previously under common control. Which statement is true at the date Pracker becomes Seaton's primary beneficiary?

A.

Consolidated noncontrolling interest equals the book value of Seaton's net assets.

B.

Consolidated noncontrolling interest equals the fair value of Seaton's net assets.

C.

There is no consolidated noncontrolling interest.

D.

Pracker does not consolidate Seaton.

A consolidated balance sheet of a parent and its 90%-owned subsidiary reports retained earnings equal to:

A.

Accumulated consolidated income less accumulated dividends declared by the parent

B.

Accumulated income attributable to the parent less accumulated dividends declared by the parent

C.

Accumulated separate income of the parent less accumulated dividends declared by the parent

D.

Accumulated consolidated income less accumulated dividends declared by the parent and the subsidiary

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