If Big Bertha's Birds purchases a family owned canary breeding farm for $150,000 and the family retained 12.21%, what is the minority interest that is put on the balance sheet?
A)$21,581
B)$18,315
C)$150,000
D)$131,685
E)$12,210

Question

Quizplus · Accepted Answer

The minority interest on the balance sheet is $18,315, based on the simple calculation of 1221 x 150,000.
Key Takeaway: Minority interest refers to ownership of a company that is less than 50% and is usually expressed in a percentage.

If Big Bertha's Birds Purchases a Family Owned Canary Breeding