test practice 12 - 40. award: 0 out of 0 points If Smith's...

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award: 0 out of 0 points If Smith's net income is $100,000 in the year following the acquisition, the portion allocated to the common stock (residual amount) is $92,800. $10,800 preferred stock dividend will be subtracted from net income attributed to common stock in arriving at noncontrolling interest in subsidiary income. the noncontrolling interest balance will be $27,200. the preferred stock dividend will be ignored in noncontrolling interest in subsidiary net income because Nichols owns the noncontrolling interest of preferred stock. the noncontrolling interest in subsidiary net income is $30,800. The following information has been taken from the consolidation worksheet of Graham Company and its 80% owned subsidiary, Stage Company. (1.) Graham reports a loss on sale of land of $5,000. The land cost Graham $20,000. (2.) Noncontrolling interest in Stage's net income was $30,000. (3.) Graham paid dividends of $15,000. (4.) Stage paid dividends of $10,000. (5.) Excess acquisition-date fair value over book value was expensed by $6,000. (6.) Consolidated accounts receivable decreased by $8,000. (7.) Consolidated accounts payable decreased by $7,000. 41. award: 0 out of 0 points How is the loss on sale of land reported on the consolidated statement of cash flows? $20,000 added to net income as an operating activity. $20,000 deducted from net income as an operating activity. $15,000 deducted from net income as an operating activity. $5,000 added to net income as an operating activity. $5,000 deducted from net income as an operating activity.
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This note was uploaded on 11/26/2011 for the course ADVANCED A 4110 taught by Professor Fridel during the Spring '11 term at University of Minnesota Duluth.

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test practice 12 - 40. award: 0 out of 0 points If Smith's...

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