1. Coloma Limited reports Non-controlling interests within the equity section of its statement of financial position. Which of the following statements is incorrect? A.Coloma Limited has prepared consolidated financial statements. B.Coloma Limited holds more than 50%, but less than 100%, of the shares in another company. C.All of these statements are correct. D.Coloma Limited has shareholders from a subsidiary. E.Coloma Limited is a parent entity.

1. Coloma Limited reports Non-controlling interests within the equity section of its statement of financial position. Which of the following statements is incorrect? A.Coloma Limited has prepared consolidated financial statements. B.Coloma Limited holds more than 50%, but less than 100%, of the shares in another company. C.All of these statements are correct. D.Coloma Limited has shareholders from a subsidiary. E.Coloma Limited is a parent entity.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 4BCRQ

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Company A owns shares of Company B and Company C. The statements of Company B are consolidated with those of Company A. The statements of Company C are not consolidated. Company A reports "Minority Interest" on its balance sheet. This account represents: Select one: O a. A's minority share of the stock of B O b. A's minority share of the stock of C O c. the minority share by outside owners of the stock of B O d. the minority share by outside owners of the stock of C O e. the minority share by outside owners of the stock of A
A subsidiary owns shares of its parent company. Which of the following is true concerning the treasury stock approach?a. It is one of several options to account for mutual holdings available under current accounting standards.b. The original cost of the subsidiary’s investment is a reduction in consolidated stockholders’ equity.c. The subsidiary accrues income on its investment by using the equity method.d. The treasury stock approach eliminates these shares entirely within the consolidation process.
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Subject: Corporate Accounting Q) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of the intra-group transactions between the parent entity and the subsidiary entity will need to be eliminated on consolidation? (b) What is a non-controlling interest, and how should it be disclosed? (c) How are non-controlling interests affected by intra-group transactions? (d) What are the three steps we use to calculate total non-controlling interest?
S1: The non-controlling interest of a less-than-wholly owned subsidiary have aclaim on the income and net asset of the subsidiary even though the subsidiaryis consolidated with its parent and, perhaps, other subsidiaries. S2: The dividendspaid by the subsidiary to the parent is a permanent account that is closed toaccumulated profits at the end of the year. A. Only S1 is correctB. Only S2 is correctC. Both statements are incorrectD. Both statements are correct
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