Which of the Following Statements Is True Concerning an Intercompany

question 82

Multiple Choice

Which of the following statements is true concerning an intercompany transfer of a depreciable asset?

• A)Noncontrolling interest in subsidiary's net income is never affected by a gain on the transfer.
• B)Noncontrolling interest in subsidiary's net income is always affected by a gain on the transfer.
• C)Noncontrolling interest in subsidiary's net income is affected by a downstream gain only.
• D)Noncontrolling interest in subsidiary's net income is affected only when the transfer is upstream.
• E)Noncontrolling interest in subsidiary's net income is increased by an upstream gain in the year of transfer.

---

Definitions:

Institutions

Structures or mechanisms of social order governing the behavior of a set of individuals within a given community, including laws, norms, and organizations.

Society

An organized group of individuals living together in a structured community with shared laws, traditions, and values.

Economizing Problem

The need to make choices about how to best use limited resources to satisfy unlimited wants.

Limited Resources

The economic principle that the available resources (such as time, money, and raw materials) are insufficient to satisfy all wants and needs.