Using the Fully Adjusted Equity Method,an Intercompany Gain on an Upstream

question 26

Multiple Choice

Using the fully adjusted equity method,an intercompany gain on an upstream sale of land is:

• A)recognized by the parent and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary.
• B)recognized by the subsidiary and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary.
• C)deferred by the subsidiary until the land is sold to an entity outside the consolidated group.
• D)recognized by the subsidiary and the deferral is completely allocated to the controlling stockholders of the subsidiary.

---

Definitions:

Quota Systems

Policies or practices that set a specific number or percentage for the admission, employment, or allocation of resources to certain groups of people.

Affirmative Action

Policies or measures aimed at increasing the representation of historically disadvantaged groups in areas such as employment, education, and business, through positive steps towards inclusivity.

Affirmative Action

A policy or measure taken to increase the representation of minorities and women in areas of education, employment, and business from which they have been historically excluded.

Admission Policies

Guidelines and criteria set by educational institutions or organizations for selecting individuals for entry or participation.