Tuesday, November 11, 2008

Good question regarding land transfers

Q: If we are deferring a gain of $40, like the example in the book, what does this do to calculatin CI and NCI share in the subs net income for Y1 and subsequent years?

A: In Y1 you will subtract the URG from CI Investment Income (and NCI income if transaction was upstream) and there is no effect in subsequent years.

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