Question: 10. If the parent uses the equity method on its books and is prepared to consolidate its 60% owned subsidiary, which of the following is

 10. If the parent uses the equity method on its books
and is prepared to consolidate its 60% owned subsidiary, which of the
following is true about dividends paid. a. consolidated dividends equal the dividends

10. If the parent uses the equity method on its books and is prepared to consolidate its 60% 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 11. 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 12. Amos owns 90% of Andy. Where is the 10% non controlling interest in Andy 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!