_____ In reciprocal holdings,
A) Simultaneous equations are used under the treasury stock method.
B) The treasury stock method fits under the economic unit concept.
C) The traditional allocation method fits under the parent company concept.
D) The noncontrolling interest in the income statement will always be less under the traditional allocation method than under the treasury stock method when both companies report a profit.
E) A portion of the parent's own separate earnings is reported as accruing to the noncontrolling interest shareholders under the traditional allocation method.

Question

Quizplus · Accepted Answer

The Answer of _____ In reciprocal holdings,
A) Simultaneous equations are used under the treasury stock method.
B) The treasury stock method fits under the economic unit concept.
C) The traditional allocation method fits under the parent company concept.
D) The noncontrolling interest in the income statement will always be less under the traditional allocation method than under the treasury stock method when both companies report a profit.
E) A portion of the parent's own separate earnings is reported as accruing to the noncontrolling interest shareholders under the traditional allocation method.

_____ in Reciprocal Holdings