A owns 80% of B and 20% of C.B owns 32% of C, and C owns 10% of A.Which interest will be considered NCI in the consolidated balance sheet?
A)20% of B and 48% of C
B)10% of A
C)10% of A and 48% of C
D)There will not be a non-controlling interest.

Question

A owns 80% of B and 20% of C.B owns 32% of C, and C owns 10% of A.Which interest will be considered NCI in the consolidated balance sheet?
A)​20% of B and 48% of C
B)​10% of A
C)​10% of A and 48% of C
D)​There will not be a non-controlling interest.

Quizplus · Accepted Answer

In the consolidated balance sheet, the non-controlling interest (NCI) is the portion of equity in a subsidiary not attributable to the parent company. A owns 80% of B, so 20% of B is NCI. A's effective ownership in C is 52% (80% of B's 32% in C plus A's direct 20% in C), making 48% of C NCI.

A Owns 80% of B and 20% of C