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how is the portion of consolidated earnings to be assigned to non-controlling in

ID: 2353504 • Letter: H

Question

how is the portion of consolidated earnings to be assigned to non-controlling interest in consolidated financial statements determined?

a. the net income of the parent is subtracted from the subsidiary's net income to determine the non controlling interest

b. the subsidiary's net income is extended to the non-controlling interest

c. the amount of the subsidiary's earnings is multiplied by the non-controlling's percentage ownership is adjusted for the excess cost amortization applicable to the NCI

d. the amount of consolidated earnings determined on the consolidated working papers is multiplied by the non-controlling interest percentage at the balance sheet date.

Explanation / Answer

b. the subsidiary's net income is extended to the non-controlling interest