Gerrard Ltd

question 50

Multiple Choice

Gerrard Ltd. acquired 75% of Sittler Ltd. at April 30, 2012. Both companies have April 30 year-ends. Which of the following adjustements should be made to the opening non-controlling interest (NCI) balance to arrive at the April 30, 2013 NCI balance on Gerrard's statement of financial position?

• A)Subtract the NCI's share of Sittler's fiscal 2013 net income and add in the NCI's share of Sittler's dividends declared.
• B)Add in both the NCI's share of Sittler's fiscal 2013 net income and dividends declared.
• C)Add in the NCI's share of Sittler's fiscal 2013 net income and subtract the NCI's share of Sittler's dividends declared.
• D)Subtract both the NCI's share of Sittler's fiscal 2013 net income and dividends declared.

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Definitions:

Internal Jugular

A major vein located in the neck, it collects blood from the brain, the superficial parts of the face, and the neck, and conveys it toward the heart.

Subclavian Veins

Large veins on either side of the body that receive blood from the arm and chest wall, transporting it back to the heart.

Embolism

Obstruction or occlusion of a vessel by a transported clot, a mass of bacteria, or other foreign material.

Floating Clot

A blood clot that moves through the bloodstream, potentially causing blockages in blood vessels.