What effect (if any) would Y's unrealized profits on its sales to X have on the non-controlling interest account on the consolidated balance sheet?
X Inc. owns 80% of Y Inc. During 2018, X Inc. sold inventory to Y for $10,000. Half of this inventory remained in Y's warehouse at year end. Y Inc. sold Inventory to X Inc. for $5,000. 40% of this inventory remained in X's warehouse at year end. Both companies are subject to a tax rate of 40%. The gross profit percentage on sales is 20% for both companies. Unless otherwise stated, assume X Inc. uses the cost method to account for its Investment in Y Inc.
A) There would be an increase to the non-controlling interest account for the amount of $48.
B) There would be an increase to the non-controlling interest account for the amount of $30.
C) There would be no effect.
D) There would be a decrease to the non-controlling interest account for the amount of $48.
D) There would be a decrease to the non-controlling interest account for the amount of $48.
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By looking at a statement of retained earnings, the effect of dividends on the ending balance of retained earnings can be determined
Indicate whether the statement is true or false
"Nationalism" is an issue in the ________ environment.
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