If a Firm Consolidates Subsidiaries That Are Not Wholly Owned,an

question 14

Multiple Choice

If a firm consolidates subsidiaries that are not wholly owned,an income statement item is created that is termed:

• A)dividend income.
• B)minority share of earnings.
• C)equity income.
• D)extraordinary.
• E)gain from sale of subsidiary.

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Definitions:

Legal Expenses

Costs incurred by a business for legal services, such as attorney fees and court costs.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing the company's reputation, brand, or similar factors.

Internally Generated

Refers to assets, revenues, or values created through the operations and activities of the company, not through external acquisition.

Research Costs

Expenses related to the investigation and exploration of materials, processes, or markets to generate new knowledge.