Beck Company owns a 60 percent interest in Subsidiary Company.For the year ended December 31,2016,the net income of Beck Company was $80 and the net income of Subsidiary Company was $10.What is the balance in the Noncontrolling Interests account on the consolidated income statement for the year ending December 31,2016?
A)$0
B)$4
C)$6
D)$48

Question

Quizplus · Accepted Answer

The noncontrolling interest is calculated as 40% (100% - 60% ownership by Beck) of the Subsidiary's net income, which is 40% of $10, equaling $4.

Beck Company Owns a 60 Percent Interest in Subsidiary Company