A parent has a 90% interest in its subsidiary. The subsidiary sold land at a profit to
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Question:
A parent has a 90% interest in its subsidiary. The subsidiary sold land at a profit to the parent in the current year. The father still has the land.
How does this transaction affect the share of net income and the non-controlling interest in net income for the current year, assuming the parent uses the full equity method to report its investment on its own books?
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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