1. If the parent uses the equity method on its books and is prepared to consolidate its 90% owned subsidiary, which of the following is true about dividends paid. a. consolidated dividends equal the dividends of the subsidiary b. noncontrolling interest share of subsidiary dividends increases Noncontrolling Interest on the consolidated balance sheet c. noncontrolling interest in subsidiary dividends equals subsidiary dividends multiplied by controlling interest percentage d. noncontrolling interest in subsidiary dividends equal parent dividends multiplied by NCI percentage. e. noncontrolling interest in subsidiary dividends equals subsidiary dividends multiplied by NCI percentage 2. Which of the following intercompany inventory and land transfers impacts the calculation of noncontrolling interest in subsidiary net income a. upstream transfers only b. downstream transfers only c. both upstream and downstream transfers d. neither upstream or downstream transfers e. none of the above 3. Smart owns 80% of Simple. Where is the 20% non controlling interest in Simple reported on the balance sheet under the acquisition method a. in assets b. in liabilities c. between liabilities and stockholders' equity d. in stockholders' equity e. in the footnotes only 4. Smart owns 80% of Simple. Where is the noncontrolling interest in Simple's positive net income reported on the consolidated income statement (under the acquisition method) a. As a deduction from consolidated net income b. As an addition to consolidated net income c. As a deduction from Simple's dividends d. As an addition to Smart's dividends e. As an addition to Smart's net income