When a company applies the initial value method in accounting for its investment in a subsidiary, and the subsidiary reports income in excess of dividends paid, what entry would be made for a consolidation worksheet for the second year? A)Retained earnings Investment in subsidiaryB)Investment in subsidiary Retained earningsC)Investment in subsidiary Equity in subsidiary's incomeD)Equity in subsidiary's income Investment in subsidiaryE)Additional paid-in capital Retained earnings
A. C above.
B. D above.
C. E above.
D. A above.
E. B above.
Answer: E
You might also like to view...
Choose the correct verb in parentheses. The stock (raised, rose) 4 percent yesterday
Kawamura Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed Element per MonthVariable element per tenant-dayRevenue - $37.70 Wages and salaries$3,000 $6.10Food and supplies 800 13.40Facility expenses 9,800 4.70Administrative expenses 7,100 0.20Total expenses$20,700 $24.40?The wages and salaries in the planning budget for December would be closest to:
A. $17,942 B. $17,030 C. $17,152 D. $17,787
Which module of the ERP system includes tools for financial management, such as creating and adhering to budgets, cash-flow management, expense management, risk management, and tax management?
a. finance and accounting b. human resources management (HRM) c. customer resources management (CRM) d. supply chain management (SCM)
One possible reason for a balance sheet hedge could be because the foreign subsidiary is about to be liquidated, so that value of its Cumulative Translation Adjustment (CTA) would be realized
Indicate whether the statement is true or false.