In Order to Consolidate a 70% Interest in a Subsidiary,the

question 21

Multiple Choice

In order to consolidate a 70% interest in a subsidiary,the Fitzpatrick group prepared the following pre-acquisition entry:
DR Retained earnings $2 000
DR Share capital $15 000
DR General reserve $3 000
DR Goodwill $1 000
CR Investment in subsidiary $21 000
The interest in equity attributable to the direct non-controlling interest (to the nearest dollar) is:

• A)$8 571;
• B)$9 000;
• C)$20 000;
• D)$21 000.

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Definitions:

Prothrombin

A protein in blood plasma that is the precursor to thrombin and plays a key role in blood clotting.

Antibody

A protein produced by the immune system that recognizes and binds to foreign substances, such as bacteria and viruses, to help in their destruction.

Antigen

A substance that provokes an immune response, leading to the production of antibodies.

Erythropoietin

A hormone produced by the kidneys that stimulates red blood cell production in the bone marrow.