Question

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 eliminating entries except for: Group of answer choices The basic investment account elimination entry The excess value (differential) entry The optional accumulated depreciation elimination entry The amortized excess value reclassification entry

Answer 1

Answer: The optional accumulated depreciation elimination entry

Explanation:

A non-controlling interest, is also refered to as a minority interest, and this occurs when a has below 50% of the outstanding shares and in such case doesn't have a control over decisions as well.

It should be noted that 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 eliminating entries except for the optional accumulated depreciation elimination entry.