The Following Consolidation Adjusting Journal Entries Appeared at the End

question 17

Multiple Choice

The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary. It received $1,200,000 for the shares.

The 'Cr Profit after tax' entry above represents:

• A) the profit made by the parent on the sale of the shares.
• B) the profit made by the economic entity on the sale of the shares.
• C) the amount accruing to the minority interest of the subsidiary.
• D) the share of profits derived by the subsidiary for the entire current period.
• E) the share of profits derived by the subsidiary in the current period, up to the time of divestment.

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Definitions:

Sampling Distribution

The likelihood distribution related to a specific statistic derived from a random sample.

Normal Model

A statistical model, also known as the normal distribution or Gaussian distribution, characterized by a bell-shaped curve symmetrical about its mean.

Jelly Beans

Small, bean-shaped sugar candies with various flavors and colors.

Proportion

A part, share, or number considered in comparative relation to a whole, often expressed as a fraction or percentage.