When a parent owns less than 100% of a subsidiary,the noncontrolling interest shareholders are allocated their ownership percentage of income or net assets in all of the following eliminating entries except for:
A)The basic investment account elimination entry
B)The excess value (differential)reclassification entry
C)The optional accumulated depreciation elimination entry
D)The amortized excess value reclassification entry

Question

Quizplus · Accepted Answer

The optional accumulated depreciation elimination entry only affects the parent company's books and does not affect the noncontrolling interest shareholders. Therefore, it is the only eliminating entry that does not allocate the noncontrolling interest shareholders' ownership percentage of income or net assets. The other entries (A, B, D) all involve reclassifying or reallocating values that affect the noncontrolling interest shareholders' ownership percentage.

When a Parent Owns Less Than 100% of a Subsidiary,the