Business, 06.03.2022 05:10 sarahidan

A Parent company owns an 80% controlling interest in the voting common stock of its Subsidiary. The subsidiary also has outstanding 10,000 shares of 4% cumulative preferred stock outstanding with par value equal to $1,000,000. If the parent company owns 100% of the preferred stock, how should the preferred stock be accounted for in the consolidated financial statements?

A. 80% of the preferred stock equity account is eliminated against investment in Subsidiary account on the parent's balance sheet.

B. 20% of the preferred stock equity account is assigned to the noncontrolling interests.

C. 100% of the preferred stock equity account is eliminated against investment in subsidiary account on the parent's balance sheet.

D. All of the preferred stock equity account is assigned to the non controlling interests.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 14:00

How many months does the federal budget usually take to prepare

Answers: 1

Answer

Business, 22.06.2019 20:40

On january 1, 2017, pharoah company issued 10-year, $2,020,000 face value, 6% bonds, at par. each $1,000 bond is convertible into 16 shares of pharoah common stock. pharoah’s net income in 2017 was $317,000, and its tax rate was 40%. the company had 97,000 shares of common stock outstanding throughout 2017. none of the bonds were converted in 2017. (a) compute diluted earnings per share for 2017. (round answer to 2 decimal places, e.g. $2.55.) diluted earnings per share

Answers: 3

Answer

Business, 22.06.2019 21:20

Rediger inc., a manufacturing corporation, has provided the following data for the month of june. the balance in the work in process inventory account was $28,000 at the beginning of the month and $20,000 at the end of the month. during the month, the corporation incurred direct materials cost of $56,200 and direct labor cost of $29,800. the actual manufacturing overhead cost incurred was $53,600. the manufacturing overhead cost applied to work in process was $52,200. the cost of goods manufactured for june was:

Answers: 2

Answer

Business, 22.06.2019 23:00

Which of the following represents an unlimited queue? a. toll booth serving automobiles on the interstateb. drive through lane at a fast food restaurantc. faculty office with limited seating during office hoursd. restaurant with no outside seating and limited capacity due to fire departments restrictionse. small barbershop with only 5 chairs for waiting customers

Answers: 3

Answer

You know the right answer?

A Parent company owns an 80% controlling interest in the voting common stock of its Subsidiary. The...

Questions