20231118

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School
Nipissing University **We aren't endorsed by this school
Course
ACCT 4866
Subject
Accounting
Date
Nov 14, 2023
Pages
1
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1. How is the NCI shareholders' share of net income reported the consolidated income statement? It is subtracted from total consolidated net income to arrive at the controlling interest in consolidated net income. 2. FloraWhite Inc. purchased 85% of the common shares of a subsidiary in the previous year. During the current year, the subsidiary reports net income of $50,000, while FloraWhite reports net income of $280,000, including the equity method income from the subsidiary. The consolidated net income attributable to the controlling interest is $ 280000 3. Which assets are not required to be tested for impairment annually, but only if events and circumstances indicate the book value may not be recoverable? intangible assets with finite lives property, plant, and equipment 4. Which of the following is NOT a required disclosure for an impairment loss? the date acquired and the date of the expected disposal 5. A holding company purchases 25% of the common shares of a subsidiary company for $300,000 on January 1, 20X1. Assuming the subsidiary company pays cash dividends of $40,000 in 20X1, which of the following is the journal entry to record the Wilson's share of the dividends in its books under the equity method? Dr: Cash 10000 CR: investment 10000 Debit Cash for $10,000; Credit Investment in Subsidiary for $10,000 6. Which of the following is the journal entry to record the amortization of the positive acquisition differential resulting from an excess acquisition price by the parent under the equity method? Debit Equity Method Income from Subsidiary; Credit Investment in Subsidiary 7. Which of the following is NOT a way for a parent company to account for an investment in a subsidiary in its own internal accounting records in periods subsequent to the date of acquisition? fair value method 8. To arrive at the consolidated net income attributable to the controlling interest in the subsidiary company, consolidated net income attributable to the non-controlling interest in the subsidiary company is subtracted from consolidated net income
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