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:

Ethical Judgments

are assessments made about actions or decisions based on moral principles, determining what is right or wrong.

Consequences

The results or outcomes that follow from actions, decisions, or policies, either intended or unintended.

Negotiator's Relationship

The dynamic and interactions between parties engaged in negotiation, influenced by their past dealings, trust, and communication.

Unethical Tactics

are deceptive or morally wrong strategies used in negotiations or other situations to gain an unfair advantage.