BA 459
Advanced Accounting: Beams, Clement, Anthony, Lowensohn
Floyd A. Beams
Robin P. Clement
Joseph H. Anthony
Suzanne Lowensohn
9th Edition 10th Edition
Chapter 3
Exercise 3-2 (E3-2)
General problems
1. Under FASB Statement No. 94, “Consolidation of All Majority-Owned Subsidiaries,” a parent company should exclude a subsidiary from consolidation if:
2. The FASB’s primary motivation for issuing FASB Statement No. 94, “Consolidation of All Majority-Owned Subsidiaries,” was to:
3. Parent-company and consolidated financial statement amounts would not be the same for:
4. Noncontrolling interest, as it appears in a consolidated balance sheet, refers to:
5. Pat Corporation acquired an 80% interest in Sal Corporation on January 1, 2007, and issued consolidated financial statements at and for the year ended December 31, 2007. Pat and Sal had issued separate-company financial statements in 2006.
6. The noncontrolling interest expense that appears in the consolidated income statement is computed as follows:
7. The retained earnings that appear on the consolidated balance sheet of a parent company and its 60%-owned subsidiary are:
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