In Calculating the Non-Controlling Interest in Earnings, What Is One

question 39

Multiple Choice

In calculating the non-controlling interest in earnings, what is one of the adjustments that must be made to the subsidiary's separate-entity earnings before the NCI percentage can be applied?

• A)Adjust for only realized profits from upstream sales.
• B)Adjust for only unrealized profits from upstream sales.
• C)Adjust for both realized and unrealized profits from upstream sales.
• D)Adjust for both realized and unrealized profits from downstream sales.

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Definitions:

Prepaid Workers' Compensation

An asset account that represents payments made in advance for workers' compensation insurance coverages.

Workers' Compensation Insurance Expense

The cost incurred by employers to provide insurance that covers employees' injuries or illnesses related to work.

Payroll Tax Deductions

Amounts withheld from an employee's wages by an employer for taxes, including federal and state income tax and FICA taxes.

FUTA Tax Credit

A credit against Federal Unemployment Tax Act (FUTA) tax liability that employers can claim for amounts paid into state unemployment funds.