In the consolidated income statement of Wattlebird Corporation and its 85% owned Forest subsidiary,the noncontrolling interest share was reported at $45,000.Assume the book value and fair value of Forest's net assets were equal at the acquisition date.What amount of net income did Forest have for the year?
A)$52,941
B)$38,250
C)$235,000
D)$300,000

Question

Quizplus · Accepted Answer

The noncontrolling interest share of $45,000 represents 15% of Forest's net income, as Wattlebird owns 85%. To find Forest's total net income, divide $45,000 by 0.15, which equals $300,000.

In the Consolidated Income Statement of Wattlebird Corporation and Its