Able Company Owns an 80% Interest in Barns Company and a 20

Multiple Choice

Able Company owns an 80% interest in Barns Company and a 20% interest in Carns Company. Barns owns a 40% interest in Carns Company.

A) Carn will not be included in the consolidation process
B) Carn will be included in the consolidation process; 20% of prior period amortizations will be distributed to Retained Earnings-Carn
C) Carn will be included in the consolidation process; 40% of prior period amortizations will be distributed to Retained Earnings-Carn
D) Carn will be included in the consolidation process; NCI will be allocated 6.4% of prior-period profits originated by Carn