What effect will the rent of $10,000 charged by the Subsidiary to the Parent Company have on the calculation of the non-controlling interest in the net income of the Subsidiary? The Parent Company owns 80% of the Subsidiary.

Question

Quizplus · Accepted Answer

The rent charged by the subsidiary to the parent company is an intra-group transaction, which means it is eliminated in consolidation. Therefore, it does not affect the calculation of the non-controlling interest in the net income of the subsidiary.

What Effect Will the Rent of $10,000 Charged by the Subsidiary