Pant Inc.owns 80% of Sockswear Co.During 2013, they reported revenues and expenses as follows: Pant revenues $10 million, expenses $8.5 million; Sockswear revenue $3.0 million, expenses $2.5 million.There were no intercompany sales.What would be the non-controlling interest on the consolidated income statement?

Question

Quizplus · Accepted Answer

To calculate the non-controlling interest (NCI), we need to find the portion of Sockswear's income that is not owned by Pant Inc. 
Since Pant Inc. owns 80% of Sockswear Co., they own 100% - 80% = 20% of Sockswear Co. 
Therefore, Sockswear's income attributable to NCI would be: 
(20% x $3.0 million) - (20% x $2.5 million) = $100,000 
So, the NCI on the consolidated income statement would be $100,000.

Pant IncOwns 80% of Sockswear Co