Alpha purchased an 80% interest in Beta on June 30, 20X1. Both Alpha's and Beta's reporting periods end December 31. Which of the following represents the controlling interest in consolidated net income for 20X1?
A)100% of Alpha's July 1-December 31 income plus 80% of Beta's July 1-December 31 income
B)100% of Alpha's July 1-December 31 income plus 100% of Beta's July 1-December 31 income
C)100% of Alpha's January 1-December 31 income plus 80% of Beta's July 1-December 31 income
D)100% of Alpha's January 1-December 31 income plus 80% of Beta's January 1-December 31 income

Question

Quizplus · Accepted Answer

The parent's share of subsidiary income that was earned prior to the purchase date was earned by stockholders that are not members of the consolidated company. This income is not included in consolidated net income.

Alpha Purchased an 80% Interest in Beta on June 30