Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Gargiulo for 2018.
A) $8,500.
B) $8,570.
C) $8,430.
D) $8,400.
E) $7,580.

Question

Quizplus · Accepted Answer

The net income attributable to the noncontrolling interest can be computed as follows:
Net income attributable to the controlling interest = $42,000 - $4,500 = $37,500
Noncontrolling interest share = 10% x $37,500 = $3,750
Net income attributable to noncontrolling interest = $3,750 + $4,680 = $8,430 (Option C)

Assuming There Are No Excess Amortizations Associated with the Consolidation