The Following Information Has Been Taken from the Consolidation Worksheet

question 91

Multiple Choice

The following information has been taken from the consolidation worksheet of Graham Company and its 80% owned subsidiary, Stage Company.
(1) ) Graham reports a loss on sale of land of $5,000. The land cost Graham $20,000.
(2) ) Non-controlling interest in Stage's net income was $30,000.
(3) ) Graham paid dividends of $15,000.
(4) ) Stage paid dividends of $10,000.
(5) ) Excess acquisition-date fair value over book value was expensed by $6,000.
(6) ) Consolidated accounts receivable decreased by $8,000.
(7) ) Consolidated accounts payable decreased by $7,000.
Where does the non-controlling interest in Stage's net income appear on a consolidated statement of cash flows?

• A) $30,000 added to net income as an operating activity on the consolidated statement of cash flows.
• B) $30,000 deducted from net income as an operating activity on the consolidated statement of cash flows.
• C) $30,000 increase as an investing activity on the consolidated statement of cash flows.
• D) $30,000 decrease as an investing activity on the consolidated statement of cash flows.
• E) Non-controlling interest in Stage's net income does not appear on a consolidated statement of cash flows.

---

Definitions:

Intrinsic Motivation

A drive or reason to pursue a goal, which comes from inside a person, such as the joy of reading a good book.

Secondary Education

The stage of education following primary education, typically including high school and preparatory schooling.

High School Graduates

Individuals who have completed the necessary coursework and requirements to graduate from a secondary education institution.

Abstractly

Refers to thinking or understanding a concept in a way that is not concrete or specific, focusing on ideas rather than physical examples.