assessing and preparing consolidated financial statements 1

Provide full explanations and use examples to support your work.

1. Why must the eliminating entries be entered in the consolidation worksheet each time consolidated statements are prepared?
2. How is the beginning-of-period non-controlling interest balance determined?
3. How is the end-of-period non-controlling interest balance determined? Provide an example.
4. Which of the subsidiary’s account balances must always be eliminated? Why?
5. Which of the parent company’s account balances must always be eliminated? Why?

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