Which of the Following Statements Is True Concerning an Intra-Entity

question 109

Multiple Choice

Which of the following statements is true concerning an intra-entity transfer of a depreciable asset?

• A) Net income attributable to the noncontrolling interest is never affected by a gain on the transfer.
• B) Net income attributable to the noncontrolling interest is always affected by a gain on the transfer.
• C) Net income attributable to the noncontrolling interest is affected by a downstream gain only.
• D) Net income attributable to the noncontrolling interest is affected only when the transfer is upstream.
• E) Net income attributable to the noncontrolling interest is increased by an upstream gain in the year of transfer.

---

Definitions:

Natural Monopolies

Industries or markets in which the production or supply of a good or service is most cost-effective when there is a single provider, due to high infrastructure or entry costs.

Government Regulated

Refers to activities, industries, or services that are controlled or supervised by government agencies to ensure compliance with laws and regulations.

Entire Industry

Refers to all the businesses and organizations involved in the production, distribution, and sale of goods and services within a particular sector.

Demand Curve

A graphical representation showing the relationship between the price of a goods or services and the quantity demanded.