Chapter 5 Problems: 1, 2, 3, 9 1.Which of the interest describes the uphold on unify financial statements of upstream and downriver transfers? a.No difference exists in consolidate financial statements between upstream and downstream transfers. b. downriver transfers consider the computation of the noncontrolling interests share of the subsidiarys income entirely upstream transfers do non. c.Upstream transfers reckon the computation of the noncontrolling interests share of the subsidiarys income further downstream transfers do not. denounce answer d.Downstream transfers can be do by because the parent union makes them. 2. power participation owns 80 per centum of lee(prenominal) Corporations common stock. During October, Lee sold sell to blown-up businessman for $100,000. At celestial latitude 31, 50 percentage of this merchandise be in Kings schedule. flagrant internet percentages were 30 percent for King and 40 percent for Lee. The amount of unrealized intercompany profit in ending inventory at December 31 that should be eliminated in the desegregation process is a.$40,000. b.$20,000. correct answer c.$16,000. d.$15,000. (AICPA adapted) 3.
In estimator science the noncontrolling interests share of consolidated net income, how should the subsidiarys income be familiarised for intercompany transfers? a.The subsidiarys describe income is change for the impact of upstream transfers preceding to exercise the noncontrolling interests allocation. correct answer b.The subsidiarys inform income is adjusted for the impact of all transfers introductory to compute the noncontrolling interests allocation. c.The subsidiarys reported income is not adjusted for the impact of transfers prior to work out the noncontrolling interests allocation. d.The subsidiarys reported income is adjusted for the impact of downstream transfers prior to computing the noncontrolling interests allocation. 9.Wallton Corporation owns 70 percent of the bang-up stock of...If you inadequacy to grasp a full essay, rewrite it on our website: Ordercustompaper.com
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