Assuming No Intercompany Transactions,what Effect Would the Elimination of the Parent's

question 25

Multiple Choice

Assuming no intercompany transactions,what effect would the elimination of the parent's ownership interest in the shareholder equity of the subsidiary against the investment in the subsidiary have on the preparation have on the preparation of financial statements?

• A)The difference arising from the elimination entry would yield the unamortized purchase price discrepancy on that date.
• B)The difference arising from the elimination entry would give the purchase price discrepancy amortized to date.
• C)The difference arising from the elimination entry would be allocated to goodwill.
• D)The difference arising from the elimination entry would provide the balance in the non-controlling interest account.

---

Definitions:

Resistance

A measure of an object's opposition to the flow of electric current, resulting in electrical energy being dissipated as heat.

Material's

Pertaining to the substance or substances from which something is or can be made, often highlighting properties or characteristics.

Flux Density

The number of magnetic lines contained in a certain area. The area measurement depends on the system of measurement.

Magnetic Strength

An indication of the magnetic intensity or the degree of magnetization of a material or magnetic field.