Question

Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary.

Account	Dr (Cr)
Current assets	$ 4,000
Property, net	95,000
Intangible assets, net	15,000
Goodwill	100,000
Liabilities	(180,140)
Capital stock	(10,000)
Retained earnings, beginning	(16,000)
Accumulated other comprehensive income, beginning	(500)
Noncontrolling interest	(2,000)
Dividends	500
Sales revenue	(390,000)
Cost of sales and operating expenses	385,000
Other comprehensive income	(1,000)
Noncontrolling interest in net income	150
Noncontrolling interest in other comprehensive loss	(10)
Total	$ 0

The consolidated trial balance reports consolidated other comprehensive income, but a noncontrolling interest in other comprehensive loss.

What is the reason for the discrepancy?

	A.	The subsidiary declared dividends in excess of reported income for the year.
	B.	The revaluation write-offs of identifiable intangible assets previously unreported by the subsidiary are in excess of the subsidiary's reported comprehensive income.
	C.	The noncontrolling interest is subtracted from consolidated income to obtain income to the controlling interest.
	D.	The subsidiary reports an other comprehensive loss for the year, while the parent reports other comprehensive income for the year.

Answer 1

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