Dixon LtdOwns 60% of the Common Shares of Kelly Co

question 25

Multiple Choice

Dixon Ltd.owns 60% of the common shares of Kelly Co.Kelly sold a machine with a book value of $350,000 to Dixon for $410,000.When Dixon prepares its consolidated financial statements,it makes an adjustment to reduce the amortization.What is the effect of this adjustment?

• A)The total decrease in amortization will flow through to ending retained earnings.
• B)The total decrease in amortization will flow through to the ending non-controlling interest.
• C)60% of the decrease in amortization will flow through to ending retained earnings and 40% will flow through to the ending non-controlling interest.
• D)40% of the decrease in amortization will flow through to ending retained earnings and 60% will flow through to the ending non-controlling interest.

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Definitions:

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An enzyme used by retroviruses to transcribe their RNA into DNA, allowing them to integrate into the host genome.

Orthomyxoviruses

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Nucleic Acid

A biopolymer essential for all known forms of life, which carries genetic information. It includes DNA (deoxyribonucleic acid) and RNA (ribonucleic acid).

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