When a company applies the initial method in accounting for its investment in a subsidiary and the

Fantastic news! We've Found the answer you've been seeking!

Question:

When a company applies the initial method in accounting for its investment in a subsidiary and the subsidiary reports income in excess of dividends paid, what entry would be made for a consolidation worksheet?

A) Retained earnings Investment in subsidiary

B) Investment in subsidiary Retained earnings

C) Investment in subsidiary Equity in subsidiary's income

D) Equity in subsidiary's income Investment in subsidiary

E) Additional paid-in capital Retained earnings

D above

A above

C above

E above

B above

Related Book For answer-question

Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

See More Books

Posted Date: Nov 29, 2018 01:16 AM

See More Questions

What journal entry would be made as goods are transferred out from one department to another department? From the final department to the warehouse?
What journal entry would be made as goods are transferred out from one department to another department? From the final department to the warehouse? Discuss.
What journal entry would be made as goods are transferred out from one department to another department? From the final department to the warehouse?
Consider the following excerpts from a Wall Street Journal article on Burger King (Beatty, 1996): Burger King intends to bring smiles to the faces of millions of parents and children this holiday...
Consider the space of all functions of the form a + bt + cet + de-t, where a, b, c, d are scalars. (a) What function in the space corresponds to the sum of (1, 2, 3, 4) and (- 1, - 2, 0, - 1),...
Texaco Oil's 10 percent coupon bonds are selling at 109 3/8. Exactly 14 years remain to maturity. Determine the a. Current yield b. Yield to maturity
Repeat Problem 10.27 if the Froude number is 2.75. Problem 10.27 Water flows in the river shown in Fig. P10.27 with a uniform bottom slope. The total head at each section is measured by using Pitot...
The following account titles and balances were taken from the adjusted trial balance of King Co. for 2016. The company uses the periodic inventory system. Account Title ..............Balance Sales...
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of Pool Cost Driver Estimated Cost Driver Machining $ 171,100...
Ryan Ross (111-11-1112), Oscar Omega (222-22-2222), Clark Carey (333-33-3333), and Kim Kardigan (444-44-4444) are equal active members in ROCK the Ages LLC. ROCK serves as agent and manager for...
Divide Maps In the previous exercise, you took two maps and turned them into one larger map. Now the teacher wants to take that larger map and create two new maps: one to containing all students...
"What aspects must be observed regarding the relevance of INVENTORY MANAGEMENT throughout the supply chain? Conclude with your opinion about the most efficient way of handling INVENTORY MANAGEMENT."
Individual taxt payer senario: Jhon a freelance graphic designer, earned $ 8 0 , 0 0 0 i n the last financial year. H e has expenses amounting t o $ 2 0 , 0 0 0 . Calculate his taxable income, c o s...
Suppose a company had an initial investment of $50,000. The cash flow for the next five years are $18,000, $15,000, $13,000, $16,000, and $17,000, respectively. The interest rate is 11%. What is the...
How does Sprouts Farmers Market treat its employees? Tell us about wage gap in gender, diversity, health and safety.
A clothing retailer is interested in the average waist size of men. A sample is taken with the results given below. Column1 Mean 41.74 What is the sample statistic? Ex 1.230 Standard Error 1.406...
Financial information for American Eagle is presented in Appendix A, and financial information for Buckle is presented in Appendix B. Required: 1. Calculate the cash holdings ratio for both companies...
Using the information in P11-2B, compute the overhead controllable variance and the overhead volume variance. Data From Problem 11-2B: Huang Company uses a standard cost accounting system to account...
1. Use a compass and ruler to construct a triangle with the parts given in each exercise. a. b. P N A- E- P- R- O N- C N - A P -E In each part of Exercise 1, how were the given sides and the angle of...
An example of an environmental internal failure cost is a. cleaning up oil spills. b. damaging ecosystems from solid waste disposal. c. verifying supplier environmental performance. d. measuring...
Refer to the Haidary Inc. account balances for last year as shown in Exercise 16-39. Also, assume that the market price per share for Haidary Inc. is $51.50. Required: 1. Compute the dollar amount of...
Refer to the information regarding Hoosier Buddy as shown in Exercise 16-36. Required: Calculate the return on sales (round the answer to two decimal places). Exercise 16-36 Sales $11,300,000 Cost of...
If task A is an immediate predecessor of task B, what must be true about the sched- uled timing of these two tasks?
Why does a project necessarily have to possess some form of deadline? What is the implication of a project without a deadline?
What are the likely consequences to managing a highly uncertain project in the predictive style of project management?

When a company applies the initial method in accounting for its investment in a subsidiary and the

Question:

Expert Answer:

The correct answer is statement B ie ... View the full answer

Cornerstones of Managerial Accounting

Students also viewed these corporate finance questions