Alpha Corporation owns 100 percent of Beta Company, and Beta owns 80 percent of Gamma, Inc. all of which are domestic corporations. Information for the three companies for the year ending December 31, 2013 follows: What is the total non-controlling interest in the subsidiaries' income for 2013?

Question

Alpha Corporation owns 100 percent of Beta Company, and Beta owns 80 percent of Gamma, Inc. all of which are domestic corporations. Information for the three companies for the year ending December 31, 2013 follows:  What is the total non-controlling interest in the subsidiaries' income for 2013?

Quizplus · Accepted Answer

Since the First Sub is Wholly-Owned the only Non-Controlling Interest is in the Second Sub therefore, Operating Income ($100,000) - Unrealized I/E Gains ($4,000) = Sub's Accrual Income ($96,000 × .20) $19,200

Alpha Corporation Owns 100 Percent of Beta Company, and Beta