Stanger Company owns 85% of the outstanding stock of Willden Company. At the end of the year, Willden Company reported revenues of $2,500 and expenses of $1,800. How much minority interest will be reported on Stanger Company's financial statements?

Question

Quizplus · Accepted Answer

Minority interest is calculated as the net income attributable to the minority shareholders. Willden's net income is $700 ($2,500 - $1,800). The minority interest is 15% of this net income, which is $105 (15% of $700).

Stanger Company Owns 85% of the Outstanding Stock of Willden