The computation of noncontrolling interest in net assets is made by multiplying the noncontrolling interest percentage at the:
A) beginning of the year times subsidiary stockholders' equity amounts.
B) beginning of the year times consolidated stockholders' equity amounts.
C) end of the year times subsidiary stockholders' equity amounts.
D) end of the year times consolidated stockholders' equity amounts.

Question

Quizplus · Accepted Answer

The computation of noncontrolling interest in net assets is correctly made by multiplying the noncontrolling interest percentage at the end of the year times the subsidiary's stockholders' equity amounts. This approach reflects the current year's ownership interest in the net assets of the subsidiary.

The Computation of Noncontrolling Interest in Net Assets Is Made