In a business combination in which the parent company owris 80% of the subsidiary, which of...

 

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In a business combination in which the parent company owris 80% of the subsidiary, which of the following statements is true? OThe consolidation procedure is the same as in 100% ownership, but the equity and net income of the noncontrolling interest must be reported on the financial statements OThe combination is considered a statutory merger. OThe consolidation procedure is the same as in 100% ownership, but the equity and net income of the noncontrolling interest must be disclosed in the notes to the financial statements. O Only 80% of the subsidiary's net income and net assets are reported on the consolidated financial statements. OThe parent company is required to use the equity method to account for its investment in the subsidiary on its own books In a business combination in which the parent company owris 80% of the subsidiary, which of the following statements is true? OThe consolidation procedure is the same as in 100% ownership, but the equity and net income of the noncontrolling interest must be reported on the financial statements OThe combination is considered a statutory merger. OThe consolidation procedure is the same as in 100% ownership, but the equity and net income of the noncontrolling interest must be disclosed in the notes to the financial statements. O Only 80% of the subsidiary's net income and net assets are reported on the consolidated financial statements. OThe parent company is required to use the equity method to account for its investment in the subsidiary on its own books

Answer rating: 100% (QA)

ANSWER A The Consolidation procedure is the same as in 100 but the equity and net income of the nonc... View the full answer