The Noncontrolling Interest in Consolidated Income When the Selling Affiliate

question 35

Multiple Choice

The noncontrolling interest in consolidated income when the selling affiliate is an 80% owned subsidiary is calculated by multiplying the noncontrolling minoritydelete minority ownership percentage by the subsidiary's reported net income

• A)plus unrealized profit in ending inventory less unrealized profit in beginning inventory.
• B)plus realized profit in ending inventory less realized profit in beginning inventory.
• C)less unrealized profit in ending inventory plus realized profit in beginning inventory.
• D)less realized profit in ending inventory plus realized profit in beginning inventory.

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Definitions:

Specific Performance

is a legal remedy in contract law where a court orders a party to perform their contractual duties, rather than simply paying damages for failing to fulfill the contract.

Seller

A seller is an individual or entity that offers goods or services for sale.

Identified Goods

Identified goods are specific items that have been designated or set aside for a particular contract or sale, distinct from others.

Solvent

The state of being able to pay all debts as they come due, and having assets exceed liabilities.