Question

14. How is reciprocity established for preferred stock?

               a. Preferred’s share of S’s ending RE – preferred’s share of RE at acq. × P’s % ownership

               b. Preferred’s share of S’s ending RE – preferred’s share of RE at acq. × noncontrolling %

               c. Preferred’s share of S’s ending RE – total RE at acq. × P’s % ownership

                d. Preferred’s share of S’s ending RE – total RE at acq × S’s % ownership

15. What is the controlling interest in consolidated net income?

               a. P’s independent income + P’s share of S’ total income

               b. P’s independent income + other adjustments + P’s share of S’s income assigned to preferred + P’s share of S’s income assigned to common

                  c. P’s independent income + other adjustments + P’s share of S’s income assigned to preferred + P’s share of S’s total income

               d. P’s independent income + other adjustments + S’s total income

Answer 1

14) a. Preferred’s share of S’s ending RE – preferred’s share of RE at acq. × P’s % ownership - correct option	Reciprocity means give-and-take, such as to achieve a mutually agreeable balance.
15) b. P’s independent income + other adjustments + P’s share of S’s income assigned to preferred + P’s share of S’s income assigned to common. - Correct Option	The consolidated net income attributable to controlling interest and consolidated net income attributable to non-controlling interest.