Riley Corp. owned 90% of Brady Inc., while Brady owned 10% of the outstanding common shares of Riley. No goodwill or other allocations were recognized in connection with either of these acquisitions. Riley reported net income of $255,000 for 2021 whereas Brady recognized $87,000 during the same period. No investment income was included within either of these income totals.On a consolidated income statement, what is the net income attributable to the noncontrolling interest?

Question

Quizplus · Accepted Answer

Riley's net income attributable to the controlling interest is $255,000 x 90% = $229,500. Brady's net income attributable to the noncontrolling interest is $87,000 x 10% = $8,700. Therefore, the net income attributable to the noncontrolling interest is $8,700.