Arkin, Inc., owns 90 percent of the outstanding stock of Baldwin Company. Curtis, Inc., owns 10 percent of the outstanding stock of Baldwin Company. On the consolidated financial statements of Arkin, Curtis should be considered as
A) A holding company
B) A subsidiary not to be consolidated
C) An affiliate
D) A noncontrolling interest

Question

Quizplus · Accepted Answer

Curtis, Inc. owns 10 percent of the outstanding stock of Baldwin Company, which is less than 50 percent. Therefore, it is considered a noncontrolling interest and should be included in the consolidated financial statements as such.