Essay
Barking Power Corporation acquired 80% of the voting common shares of Brighton Beach Corporation on December 31,2016.During the year ended December 31,2017,Barking Power Corporation and Brighton Beach Corporation reported net income of $110,000 and $75,000 from their own operations,respectively.
a.How much income attributable to the equity holders of the parent corporation will be reported on the consolidated income statement for the year ended December 31,2017?
b.Discuss the way in which non-controlling interests in the subsidiary might be presented on consolidated financial statements.What exactly does non-controlling interest represent?
Correct Answer:
Verified
a.$110,000 + ($75,000 × 0.80)= $170,000
...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q9: Non-controlling interest occurs when a company owns
Q19: If a company owns 49% of the
Q23: In present value calculations,the process of determining
Q33: On January 1,2016,TXU Europe Corporation purchased 40%
Q34: The sale of a long-term investment would
Q36: In 2017,Gigajoule Corporation used the equity method
Q37: PET Corporation purchased 225,000 shares of SOX
Q39: On May 1,2016,Gigajoule Company paid $180,000 to
Q40: On January 1,2013 Blue Cat Corporation purchased
Q42: On January 1,2016,TXU Europe Corporation purchased 40%