Assuming the Parent entity elects to measure the NCI at proportionate basis, the computation of non- controlling interest in net income of subsidiary is reduced by the following, except:

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter22: S Corporations
Section: Chapter Questions
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1. Assuming the Parent entity elects to measure the NCI at proportionate basis, the computation of non- controlling interest in net income of subsidiary is reduced by the following, except:

O Amortization of undervalued assets

O All of the above

O Amortization of overvalued liabilities

O Impairment loss of goodwill

2. Which of the following statements is correct?

Statement 1: Any unrealized profit or loss made by the subsidiary should be eliminated from its profit.

Statement 2: only the group portion of any unrealized profit need to be eliminated.

a. both I and II

b. I

c. Neither 1 or 2

d. II

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