(Learning Objective 4: Explain goodwill and minority interest) Two accounts that arise from…

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(Learning Objective 4: Explain goodwill and minority interest) Two accounts that arise from consolidation accounting are goodwill and noncontrolling interest.

1. What is goodwill, and how does it arise? Which company reports goodwill, the parent or the subsidiary? Where is goodwill reported?

2. What is noncontrolling interest, and which company reports it, the parent or the subsidiary? Where is noncontrolling interest reported?

 

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