Petros Limited is a subsidiary of Butros Limited.When Butros acquired its 60% interest the retained earnings of Petros Limited were $20 000.At the beginning of the current period Petros Limited's retained earnings had increased to $50 000.Petros earned profit of $10 000 during the current period.The share of the non-controlling interest in the equity of Petros Limited at reporting date is:
A)$24 000
B)$32 000
C)$36 000
D)$48 000.

Question

Quizplus · Accepted Answer

The non-controlling interest (NCI) holds 40% of Petros Limited. At the beginning of the period, Petros had retained earnings of $50,000. During the period, Petros earned an additional $10,000, making total retained earnings $60,000 at the reporting date. The NCI's share is 40% of $60,000, which is $24,000.

Petros Limited Is a Subsidiary of Butros Limited