In Reporting Consolidated Earnings Per Share When There Is a Wholly

question 108

Multiple Choice

In reporting consolidated earnings per share when there is a wholly owned subsidiary, which of the following statements is true?

• A) Parent company earnings per share equals consolidated earnings per share when the equity method is used.
• B) Parent company earnings per share is equal to consolidated earnings per share when the initial value method is used.
• C) Parent company earnings per share is equal to consolidated earnings per share when the partial equity method is used and acquisition-date fair value exceeds book value.
• D) Parent company earnings per share is equal to consolidated earnings per share when the partial equity method is used and acquisition-date fair value is less than book value.
• E) Preferred dividends are not deducted from net income for consolidated earnings per share.

Identify the structural characteristics of various connective tissues.

Recognize the specific functions of muscle tissue types.

Describe the properties and functions of epithelial tissue.

Comprehend the unique features and roles of nervous tissue.

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Definitions:

Proportionate Consolidation Method

An accounting method where an investing entity records its share of the assets, liabilities, income, and expenses of an associate or joint venture.

Assets and Liabilities

Assets are resources owned by a company expected to provide future benefits, and liabilities are obligations a company owes to outside parties.

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, not under compulsion and both having reasonable knowledge of the relevant facts.

Acquisition Differential

The excess of the cost of acquisition over the fair value of the net assets acquired in a business combination, often attributed to intangibles like goodwill.