_____ In reciprocal holdings in which the traditional allocation method is used,
A) The noncontrolling interest is shown as a deduction in arriving at the consolidated net income.
B) All the parent's own separate earnings are shown as accruing to the controlling interest.
C) The subsidiary applies the equity method of accounting with regard to its investment in the parent's common stock, regardless of the subsidiary's ownership percentage in the parent.
D) In the consolidated income statement, the earnings shown as accruing to the noncontrolling interest shareholders will always be greater than under the treasury stock method when both companies report a profit.
E) None of the above.

Question

Quizplus · Accepted Answer

The Answer of _____ In reciprocal holdings in which the traditional allocation method is used,
A) The noncontrolling interest is shown as a deduction in arriving at the consolidated net income.
B) All the parent's own separate earnings are shown as accruing to the controlling interest.
C) The subsidiary applies the equity method of accounting with regard to its investment in the parent's common stock, regardless of the subsidiary's ownership percentage in the parent.
D) In the consolidated income statement, the earnings shown as accruing to the noncontrolling interest shareholders will always be greater than under the treasury stock method when both companies report a profit.
E) None of the above.

_____ in Reciprocal Holdings in Which the Traditional Allocation Method