What is the impact on the non-controlling interest of a subsidiary when there are downstream transfers of inventory between the parent and subsidiary companies? Select one: A. There is no impact on the non-controlling interest of a subsidiary. B. Any resulting gain or loss is reported (in total) in the current period income statement. C. A pro rata portion of deferred gain or loss is recognized in the income statement. D. Any cash received is reported in Accumulated Other Comprehensive Income.

Under the cost method, dividends declared by a subsidiary are accounted for by the parent as: Select one: A. Decrease in Equity Investment, but only if it is a liquidating dividend. B. Decrease in Equity Investment. C. Dividend income. D. Increase in Equity Method Income

Bond Company sells inventory to its subsidiary, Esquivel Company, at a profit during 2020. If Bond uses the cost method to account for its investment in Esquivel, which of the following choices would be a debit entry in the consolidated worksheet for 2021? Select one: A. Inventory B. Cost of goods sold C. Sales D. Investment in subsidiary

On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five year estimated remaining life. Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively. Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively. Assume that Republic uses the cost method to account for its investment in Barre. Compute the [ADJ] consolidating entry necessary for 2021. Select one: A. $165,000 B. $155,750 C. $245,750 D. $320,750