Fleming Ltd

question 41

Multiple Choice

Fleming Ltd. acquired 75% of Donner Ltd. on April 30, 20X1. Both companies have April 30th year-ends. Which of the following should be made to the opening non-controlling interest (NCI) balance to arrive at the April 30, 20X2, NCI balance on Fleming's statement of financial position?

• A)Add in the NCI's share of Donner's fiscal 20X2 net income and subtract the NCI's share of Donner's dividends declared.
• B)Subtract the NCI's share of Donner's fiscal 20X2 net income and add in the NCI's share of Donner's dividends declared.
• C)Add in both the NCI's share of Donner's fiscal 20X2 net income and dividends declared.
• D)Subtract both the NCI's share of Donner's fiscal 20X2 net income and dividends declared.

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Definitions:

Permanent Liver Damage

Long-term harm to the liver that affects its function, potentially resulting from conditions like hepatitis, alcohol abuse, or drug toxicity.

Comparative Negligence

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based claim, proportionate to their degree of fault in causing the harm.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales.

Negligence Theory

A legal concept that holds parties liable for harm caused by their failure to act as a reasonable person would under similar circumstances.