28) The noncontrolling interest line item on the income statement represents A)
ID: 2392183 • Letter: 2
Question
28) The noncontrolling interest line item on the income statement represents A) the portion of the subsidiary owned by others, which is deducted to determine net incom 6) the portion of the subsidiary owned by the reporting entity, which is added to determine C) the portion of earnings owned by the reporting entity, which is deducted to determine net income net income D) th e portion of earnings that belongs to others, which is added to determine net income 8i Company had the following balances for income from continuing operations and pretax gains and losses on December 31: 222,000 (76,000) 27,000 (140,000) (69,000) Income from continuing operations Loss on discontinued operations Unrealized gain on available-for-sale security Loss on impairment of Goodwill Foreign currency translation los The company's effective tax rate is 40%. What amount should Gerogi Company report as comprehensive income for the year ended December 31? A) $95,200 B) $104,000 C) $151,200 D) $196,800 30) Biglo Chemical Company reported the following in the statement of comprehensive income for the year ended December 31 Income from continuing operations before tax 500,000 (150,000) 350,000 (110,000) 240,000 Income tax expense Net income Other comprehensive income Comprehensive income During the year, the company paid $65,000 in dividends and purchased treasury stock with a par value of $10,000 at a cost of $70,000. If the balance of Retained Earnings at the beginning of the year was $3,700,000, what is the balance of Retained Earnings at the end of the year? A) $4,005,000 B) $3,985,000 C) $3,935,000 D) $3,915,000 31) Degree of solvency refers to B) a company's ability to refinance long-term debt as it becomes due ) a company's ability to quickly convert long-term assets into current assets A) a company's ability to meet long-term obligations as they become due C) a company's ability to quickly convert current assets into cashExplanation / Answer
Answer to 28:
The answer is A.
Explanation:
Minority interest can simply be defined as the value of share, or the interest attributable to the shareholders holding less than 50% of the total number of shares. Shareholders holding less than 50% of the total outstanding number of shares are known as minority shareholders. It is also known as Non-controlling interest.
For example, A & B are the two shareholders of Company Pine-Apple Inc. holding 80% and 20% respectively. In the Balance-sheet of Pine –Apple Inc. Shareholder B will be considered as minority shareholder since it owns less than 50% of total shares and its net worth as on date has to be shown under the separate head as minority interest. Whereas, shareholder A is the majority shareholder of Pine-Apple Inc.
Answer to 30:
The answer is B
Expaination:
Retained Earnings (RE) are the portion of a business’s profits (net income) that are not distributed as dividends to shareholders but instead are reserved for reinvestment back into the business.
Calculation of retained earnings:
Formula of reatained earning = Opening retained earning +Net income/loss- dividend paid
Operning retained earnings = $3,700,000
ADD: Net income = $350,000
LESS: dividend paid = ($65,000)
Retained earning at the end of year = $3,985,000
*Note: Net income calculated in the statement of comprehensive income used to calculate retained earning balance.
Answer to 31
The answer is A.
Explaination:
We could explain this by simply defining what is solvency ratio. Solvency ratio is a key metric used to measure an enterprise’s ability to meet its debt and other obligations. The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. The lower a company's solvency ratio, the greater the probability that it will default on its debt obligations.
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