Able Company Owns an 80% Interest in Barns Company and a 20

question 39

Multiple Choice

Able Company owns an 80% interest in Barns Company and a 20% interest in Carns Company.Barns owns a 40% interest in Carns Company.

• A)​Carn will not be included in the consolidation process
• B)​Carn will be included in the consolidation process; 20% of prior period amortizations will be distributed to Retained Earnings-Carns
• C)​Carn will be included in the consolidation process; 40% of prior period amortizations will be distributed to Retained Earnings-Carns
• D)​Carn will be included in the consolidation process; NCI will be allocated 6.4% of prior-period profits originated by Carns

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Definitions:

Molecular Oxygen

A diatomic molecule composed of two oxygen atoms, O2, essential for most forms of life on Earth due to its role in cellular respiration.

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