Solved

The Net Incomes for Parent and Sub Inc for the Year

Question 34

Multiple Choice

The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. Assuming that Parent Inc. purchased 80% of Sub's voting shares on the date of acquisition (August 1, 2012) for $180,000, what would be the amount of the Non-Controlling Interest on the date of acquisition if the Entity Method were used? A) $26,000 B) $38,000 C) $45,000 D) $104,000 The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. Assuming that Parent Inc. purchased 80% of Sub's voting shares on the date of acquisition (August 1, 2012) for $180,000, what would be the amount of the Non-Controlling Interest on the date of acquisition if the Entity Method were used? A) $26,000 B) $38,000 C) $45,000 D) $104,000 The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. Assuming that Parent Inc. purchased 80% of Sub's voting shares on the date of acquisition (August 1, 2012) for $180,000, what would be the amount of the Non-Controlling Interest on the date of acquisition if the Entity Method were used?


A) $26,000
B) $38,000
C) $45,000
D) $104,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q30: The focus of the Consolidated Financial Statements

Q31: If a business combination occurs and the

Q32: Non-Controlling Interest is presented in the Shareholders'

Q35: On the date of formation of a

Q38: Contingent consideration should be valued at:<br>A) the

Q38: Which accounts on the consolidated balance sheet

Q39: Discuss the disclosure requirements for long term

Q41: After the introduction of the entity method

Q46: When preparing the consolidated balance sheet on

Q55: Why might the fair value of the