If a parent company owns 20% of the outstanding cumulative preferred stock of its subsidiary, 80% of the preferred stockholders' equity (aggregate call price plus any dividends in arrears) is included in minority interest in net assets of subsidiary in the consolidated balance sheet.

Question

Quizplus · Accepted Answer

The preferred stock of a subsidiary is included in minority interest in net assets of subsidiary in the consolidated balance sheet at 80% of the preferred stockholders' equity (aggregate call price plus any dividends in arrears) when the parent company owns 20% of the outstanding cumulative preferred stock of its subsidiary.

If a Parent Company Owns 20% of the Outstanding Cumulative