The Noncontrolling Interest in Consolidated Income When the Selling Affiliate

question 9

Multiple Choice

The noncontrolling interest in consolidated income when the selling affiliate is an 80% owned subsidiary is calculated by multiplying the noncontrolling 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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