Hamandeggs Company owns a 60% interest in Hormel Company. The consolidated balance sheet of Hamandeggs Company, prepared at the beginning of the year, showed a minority interest of $30. The net income of Hamandeggs Company and Hormel Company were $80 and $10, respectively. The ending balance in the Minority Interest account is:

Question

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The minority interest is 40% of Hormel's net income. 40% of $10 is $4. Adding this to the beginning minority interest of $30 gives an ending balance of $34.

Hamandeggs Company Owns a 60% Interest in Hormel Company