Which of the Following Situations,involving Eliminations as Part of the Consolidation

question 21

Multiple Choice

Which of the following situations,involving eliminations as part of the consolidation process,would not have implications for the calculation of minority interests?

• A) The sale of a non-current asset by the subsidiary to the parent.
• B) The payment of a management fee by the subsidiary to the parent.
• C) The sale of inventory by the parent to the subsidiary.
• D) The payment of a management fee by the subsidiary to the parent and the sale of inventory by the parent to the subsidiary.
• E) The sale of a non-current asset by the subsidiary to the parent and the sale of inventory by the parent to the subsidiary

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Definitions:

Borrow

To borrow means to receive something of value with the promise to return it within a specified time frame, often with interest in the case of money.

Year Mortgage

Refers to the term or length of a mortgage, typically specified in years, indicating the repayment period.

Future Value

The value of an investment or a sum of money projected to grow by a specific date, factoring in compound interest or returns.

Interest Rate

The percentage of a sum of money charged for its use, which can vary based on factors such as inflation, supply and demand of credit, and governmental policy.