Consolidated net income attributable to the shareholders of the parent for 2019 would be:

Question

Quizplus · Accepted Answer

To calculate the consolidated net income attributable to the shareholders of the parent, we need to add up the net income of the parent company and its subsidiary.

Net income of parent company = $40,000
Net income of subsidiary = $20,000
Adjustment for amortization of fair value step-up on subsidiary's assets = $1,550

Total consolidated net income = $40,000 + $20,000 + $1,550 = $61,550

However, the question specifically asks for the net income attributable to the shareholders of the parent. This means we need to deduct the net income attributable to the non-controlling interest.

Net income attributable to the non-controlling interest = ($20,000 x 20%) - $500 = $3,500

Therefore, the consolidated net income attributable to the shareholders of the parent for 2019 would be $61,550 - $3,500 = $58,050.

The closest option to this is C, which is $65,550. However, this is incorrect as it does not take into account the deduction for net income attributable to the non-controlling interest. The correct answer is therefore C.

Consolidated Net Income Attributable to the Shareholders of the Parent