Solved

Waite CoIs a Subsidiary of Star Ltd

Question 18

Multiple Choice

Waite Co.is a subsidiary of Star Ltd.During the year,Waite earned net income of $65,000.Star recorded this income on its books using the equity method.What elimination entry does Star have to make in the consolidation process with respect to this income?


A) Waite Co.is a subsidiary of Star Ltd.During the year,Waite earned net income of $65,000.Star recorded this income on its books using the equity method.What elimination entry does Star have to make in the consolidation process with respect to this income? A) B) C) D) No entry is required under the equity method.
B) Waite Co.is a subsidiary of Star Ltd.During the year,Waite earned net income of $65,000.Star recorded this income on its books using the equity method.What elimination entry does Star have to make in the consolidation process with respect to this income? A) B) C) D) No entry is required under the equity method.
C) Waite Co.is a subsidiary of Star Ltd.During the year,Waite earned net income of $65,000.Star recorded this income on its books using the equity method.What elimination entry does Star have to make in the consolidation process with respect to this income? A) B) C) D) No entry is required under the equity method.
D) No entry is required under the equity method.

Correct Answer:

verifed

Verified

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

Related Questions

Q13: A subsidiary sold goods to its parent

Q14: On the date that a company acquires

Q15: In consolidating parent-founded subsidiaries, what account is

Q16: The goodwill impairment test does not involve

Q17: On January 1,20X3,Dwayne Ltd.formed Carlos Co. ,a

Q19: Mitzy's Muffins Ltd.purchased a commercial baking system

Q21: On December 31,20X2,the Pipe Ltd.purchased 100% of

Q22: DC Company purchased 100% of the outstanding

Q23: DC Company purchased 100% of the outstanding

Q33: Inventory was acquired as part of a