The Following Data Pertains to Questions

question 20

Multiple Choice

The following data pertains to questions
Parent and Sub Inc had the following balance sheets on July 31,2007: The Net Incomes for Parent and Sub Inc for the year ended July 31,2007 were $120,000 and $60,000 respectively.
-What would be the amount of Non-Controlling Interest appearing on the Consolidated Balance Sheet on the date of acquisition,assuming once again that Parent purchased 80% of Sub Inc.for $180,000 under current GAAP?

• A)$26,000
• B)$86,000
• C)$72,000
• D)The answer cannot be determined from the information given.

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Definitions:

Revenue Journal

A financial journal used to record specific types of revenue transactions, detailing the source and amount of income.

Customer Account

is a financial account that records the transactions, balance, and other financial interactions between a business and its customer.

Revenue Journal

A specialized accounting journal where a business records its revenue transactions.

Cash Sales

Transactions in which goods or services are exchanged for immediate payment in the form of cash or its equivalents.