Barnard Company owns a 60 percent interest in Simon Company.For the year ended December 31,2016,the net income of Barnard Company was $80 and the net income of Simon 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 in Simon Company's net income is 40% (100% - 60%) of Simon's net income of $10, which equals $4 (0.40 * $10 = $4). This amount represents the portion of Simon's net income attributable to the noncontrolling shareholders and is reported in the Noncontrolling Interests account on the consolidated income statement.

Barnard Company Owns a 60 Percent Interest in Simon Company