1. When the parent owns 80% of the subsidiary and accounted for the investment under the equity method, what is the purpose of consolidating entry D?
Removes the controlling interest share of dividends accrued
Removes the noncontrolling interest share of dividends accrued
Eliminates the noncontrolling interest share of the current year effects from the amortization of acquisition fair value adjustments
Eliminates the controlling interest share of the current year effects from the amortization of acquisition fair value adjustments.
2. When control of a subsidiary is acquired at a time subsequent to the beginning of the subsidiay's fiscal year, which statement is false?
the investment in subsidiary account recorded by the parent will include a consolidated balance
the income statements are consolidated as usual
the subsidiary's pre-acquisition revenues and expenses are excluded from the parent's consolidated statements via consolidating entry S
only a partial year's amortization on excess fair value is taken.