{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
40. 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.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern