Conrad Company Reported the Following Balances at June 30, 2015

question 49

Multiple Choice

Conrad Company reported the following balances at June 30, 2015: $$\begin{array} { l r } \text { Sales Revenue } & \$ 16,200 \\\text { Sales Returns and Allowances } & 600 \\\text { Sales Discounts } & 300 \\\text { Cost of Goods Sold } & 7,500\end{array}$$ Net sales for the month is

• A) $7,800
• B) $15,300.
• C) $15,600.
• D) $16,200.

Demonstrate understanding of the calculation and adjustment of NCI share at the acquisition date.

Explore reasons and implications of holding less than 100% ownership in a subsidiary.

Understand the adjustments required for non-controlling interest (NCI) in consolidation.

Identify the differences between the partial goodwill method and the full goodwill method.

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Definitions:

Bond Yield

The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.

Face Value

Face value refers to the nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate.

Principal Amount

The initial size of a loan or debt on which interest is calculated, or the original investment amount in a financial instrument.

Maturity

The date on which a financial obligation must be repaid in full.