What effect will the rent of $10,000 charged by the Subsidiary to the Parent Company have...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
What effect will the rent of $10,000 charged by the Subsidiary to the Parent Company have on the calculation of the non-controlling interest in the net income of the Subsidiary? The Parent Company owns 80% of the Subsidiary. A) The non-controlling interest will decrease by $10,000. B) The non-controlling interest will decrease by $8,000. C) There is no effect on the non-controlling interest. D) The non-controlling interest will increase by $10,000. What effect will the rent of $10,000 charged by the Subsidiary to the Parent Company have on the calculation of the non-controlling interest in the net income of the Subsidiary? The Parent Company owns 80% of the Subsidiary. A) The non-controlling interest will decrease by $10,000. B) The non-controlling interest will decrease by $8,000. C) There is no effect on the non-controlling interest. D) The non-controlling interest will increase by $10,000.
Expert Answer:
Answer rating: 100% (QA)
There is no effect on the noncontrolling interest Explanation Consolidated accounting is ... View the full answer
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
Posted Date:
Students also viewed these accounting questions
-
What effect will the new legislation likely have on the market share of the largest rating agencies? How will the new legislation affect the process of finding ratings information for investors?...
-
What effect will the following events have on the cash conversion cycle ? a. Higher financing rates induce the firm to reduce its level of inventory. b. The firm obtains a new line of credit that...
-
What effect will the following have on the cash conversion cycle ? a. Customers are given a larger discount for cash transactions. b. The inventory turnover ratio falls from 8 to 6. c. New technology...
-
1. Underline the word at right that best describes the client's: 2. Discuss appropriate client objectives: A. Risk B. Return Case Facts Type of mvestorInstututional; endowment Purpose Asset base...
-
Same as Problem 11.9 except that the bearing of the first line is S 50o 22' 44'' E and the bearing of the second line is S 28o 42' 20'' W.
-
What mass of potassium sulfate, K 2 SO 4 , is needed to prepare 500 mL of a 0.200 M K 2 SO 4 solution? Strategy Use the molarity and volume of solution to determine the amount (moles) of K 2 SO 4...
-
According to a survey, the probability that an adult chosen at random watches a movie every day is about 0.60. Classify the statement as an example of classical probability, empirical probability, or...
-
As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loanable funds are inadequate to take care of the demand, how might your...
-
Evaluate the integral /4 S sec6 x tan6 x dx 0
-
a. Prepare a UML class diagram that captures Rubber Duck's brewing process. b. Using the preceding information and the following attributes list, prepare a listing of the relational tables,...
-
12. The Lean principle focuses on the improvement of process speed. It is thus particularly useful to service enterprises, which need to shorten customer response time. Explain the basic concepts...
-
Explain why we use market values in determining a company's capital structure for capital budgeting?
-
Assume that the only two currencies in the world are the U.S. dollar and the euro and that the US dollar has recently appreciated. 1. What will happen to US net exports? Explain. 2. Identify who...
-
The next Java code needs to be converted from static to dynamic (just addd changes in same code): import java.util.Scanner; class MyIntStaticCircularQueue { int capacity = 2; int queue[] = new...
-
prove that (6) (e,e)=1 (LE) a = a (iii) (.)= (iv) (Tu) v = (Tv) u Using the transformation law for vectors, prove that for any two vectors A, B, the inner product of the vectors does not change under...
-
If you were evaluating a US company (recall companies have perpetual lives), and determining its cost of equity using the CAPM, what bond would you use as a proxy for the risk-free rate?
-
Information for Jackson Corporation for 2026: Net Income of $875,000. Common shares outstanding all year of 412,500. Jackson has 150,000 options to buy common stock at $50 a share outstanding. The...
-
Find the radius of convergence of? 1.2.3 1.3.5 (2n-1) r2n+1 -1
-
What is the weighted marginal cost of capital (WMCC)? What does the WMCC schedule represent? Why does this schedule increase?
-
a. Calculate (1) the ratio of exchange in market price and (2) the earnings per share (EPS) and price/earnings (PIE) ratio for each company on the basis of the data given in the table that...
-
What effect would an increased cost of capital have on a firms future investments? Asbestos, once widely used in manufacturing and construction for its strength, durability, and resistance to heat...
-
Document the CRC card for the temptation EBT.
-
Is the temptation pattern incomplete without the use of other patterns? Explain briefly.
-
What are the classes and patterns involved in defining the stable pattern for temptation?
Study smarter with the SolutionInn App