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 consolidating entries except for:
A) The basic investment account consolidation entry
B) The excess value (differential) reclassification entry
C) The optional accumulated depreciation consolidation entry
D) The amortized excess value reclassification entry

Question

Quizplus · Accepted Answer

Noncontrolling interest shareholders are allocated their ownership percentage of income or net assets in all consolidating entries, including the basic investment account consolidation entry and the excess value (differential) reclassification entry. The amortized excess value reclassification entry also involves the allocation of the noncontrolling interest's ownership percentage of the subsidiary's net assets. However, the optional accumulated depreciation consolidation entry does not involve the allocation of the noncontrolling interest's ownership percentage of income or net assets. This entry relates only to the consolidation of the subsidiary's property, plant, and equipment, and it is optional.

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