Which of the following statements is true concerning an intra-entity transfer of a depreciable asset?
A) Non-controlling interest in subsidiary's net income is never affected by a gain on the transfer.
B) Non-controlling interest in subsidiary's net income is always affected by a gain on the transfer.
C) Non-controlling interest in subsidiary's net income is affected by a downstream gain only.
D) Non-controlling interest in subsidiary's net income is affected only when the transfer is upstream.
E) Non-controlling interest in subsidiary's net income is increased by an upstream gain in the year of transfer.

Question

Quizplus · Accepted Answer

Non-controlling interest in subsidiary's net income is affected only when the transfer is upstream because the gain or loss from the transfer impacts the subsidiary's financials, which in turn affects the non-controlling interest.

Which of the Following Statements Is True Concerning an Intra-Entity