investment in Subco account was $ 552,000. During 2009 Subco reported the following: In preparing its 2009 fiscal year consolidated statements, which one of the following is the total amount of equity revenue that Parco will have to reverse for 2009 as a result of it ownership of Subco?
Question 12
Which of the following kinds of transactions should be eliminated in the consolidating process?
Question 13
Which of the following statements concerning the primary beneficiary of a variable-interest entity is / are correct? I. The primary beneficiary has the ability to direct the most significant economic activities of the variable-interest entity. II. Only one entity can be the primary beneficiary of a variable-interest entity. III. The investor that has the greatest equity ownership in a variable-interest entity will be the primary beneficiary of the entity.
Question 14
Sun Co. is a wholly owned subsidiary of Star Co. Both companies have separate general ledgers, and prepare separate financial statements. Sun requires stand-alone financial statements. Which of the following statements is correct?
Question 15
P Co. purchased term bonds at a premium on the open market. These bonds represented 20 percent of the outstanding class of bonds issued at a discount by S Co., P ' s wholly owned subsidiary. P intends to hold the bonds until maturity. In a consolidated balance sheet, the difference between the bond carrying amounts in the two companies would be