Able Company Owns an 80% Interest in Barns Company and a 20

question 9

Multiple Choice

Able Company owns an 80% interest in Barns Company and a 20% interest in Carns Company. Barns owns a 40% interest in Carns Company.

• A) Carn will not be included in the consolidation process
• B) Carn will be included in the consolidation process; 20% of prior period amortizations will be distributed to Retained Earnings-Carn
• C) Carn will be included in the consolidation process; 40% of prior period amortizations will be distributed to Retained Earnings-Carn
• D) Carn will be included in the consolidation process; NCI will be allocated 6.4% of prior-period profits originated by Carn

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Definitions:

Population Proportions

The ratio of a specific subgroup's size to the total population size.

Z-value

A uniform measure displaying the number of standard deviations a data point lies away from the average.

Binomial Proportions

The ratios that represent the outcomes of processes that follow binomial distribution, often involving two possible outcomes.

Population Mean

The average value of a population attribute, representing the central point of a data set for the entire population.