When the Parent Company Sells a Portion of Its Investment

question 12

Multiple Choice

When the parent company sells a portion of its investment in a subsidiary, the workpaper entry to adjust for the current year's income sold to noncontrolling stockholders includes a:

• A) debit to Subsidiary Income Sold.
• B) debit to Equity in Subsidiary Income.
• C) credit to Equity in Subsidiary Income.
• D) credit to Subsidiary Income Sold.

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Definitions:

Datum Targets

Specific areas designated on parts that are used as reference points for measurement, mounting, or other operations, essential for accurate manufacturing.

Datum-Target Symbol

A symbol used in geometric dimensioning and tolerancing to designate specific points, lines, or areas on a part to establish a datum.

Height Of Lettering

The vertical measurement of characters in a piece of text, affecting readability and aesthetic appearance in technical documents or products.

MMC

Maximum Material Condition, a concept in tolerance specifications indicating the limit state where a part contains the maximum amount of material within its tolerance limits.