How Is the Portion of Consolidated Earnings to Be Assigned

question 18

Multiple Choice

How is the portion of consolidated earnings to be assigned to non-controlling interest in consolidated financial statements determined?​

• A)​The net income of the parent is subtracted from the subsidiary's net income to determine the non-controlling interest.
• B)​The subsidiary's net income is extended to the non-controlling interest.
• C)​The amount of the subsidiary's earnings is multiplied by the non-controlling's percentage ownership and is adjusted for the excess cost amortization applicable to the NCI.
• D)​The amount of consolidated earnings determined on the consolidated working papers is multiplied by the non-controlling interest percentage at the balance-sheet date.

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