Park owns an 80% interest in the common stock of Stable Company.Park leased a machine to Stable under a 5-year, direct financing lease with a bargain purchase option.The lease term began January 1, 2019.The impact of the lease on the Non-controlling share of income for 2019:

Question

Quizplus · Accepted Answer

Non-controlling interest refers to the portion of equity in a subsidiary company that is not held by the parent company. Since Park owns an 80% interest in Stable Company, this means that the remaining 20% is the non-controlling interest. The lease of the machine by Park to Stable will not have any impact on the non-controlling share of income as it is a transaction between the parent company and the subsidiary company. Therefore, the answer is C - zero.

Park Owns an 80% Interest in the Common Stock of Stable