Pooke Co Acquired 75% of Finch Ltd

question 10

Multiple Choice

Pooke Co. acquired 75% of Finch Ltd. three years ago. In calculating the balance for the non-controlling interest, Pooke started with the net income from Finch's current year-end separate-entity financial statements. Which of the following adjustments must be added to Finch's net income in calculating Finch's adjusted net income?

• A)Amortization of fair value increments
• B)Unrealized gain on an upstream sale of a capital asset
• C)Unrealized profit on upstream sales of inventory in the current year
• D)Realized profits in the current year on upstream sales of inventory from the previous year

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Definitions:

Storming Stage

The second phase in group development, characterized by conflict and competition as team members start to express their individual personalities and resist the group's influence.

Infighting

Internal conflict or rivalry among members within the same organization or group, leading to reduced cohesion and effectiveness.

Coalitions

Alliances between distinct parties, organizations, or countries for a common purpose, often temporary.

Marginal Revenue

The increased earnings derived by the sale of an extra item of a good or service.