Rojas Co. owned 7,000 shares (70%) of the outstanding 10%, $100 par preferred stock and 60% of the outstanding common stock of Brett Co. When Brett reported net income of $780,000, what was the non-controlling interest in the subsidiary's income?
A) $234,000.
B) $273,000.
C) $302,000.
D) $312,000.
E) $284,000.

Question

Quizplus · Accepted Answer

$780,000 Net Income - Preferred Dividends (10,000 × $10) = $680,000 × .40 = $272,000 Non-Controlling Interest$100,000 Preferred Dividends × .30 = $30,000 Non-Controlling Interest$272,000 from Income + $30,000 Preferred Dividends = $302,000 Non-Controlling Interest in Income

Rojas Co Owned 7,000 Shares (70%) of the Outstanding 10%, $100