What Would Be the Amount of Non-Controlling Interest (NCI) Appearing

question 56

Multiple Choice

What would be the amount of Non-Controlling Interest (NCI) appearing on the consolidated balance sheet on the date of acquisition (August 1, 2018) , under the Proprietary Method, assuming that Parent purchased 80% of Sub Inc. for $180,000?

• A) $0
• B) $36,000
• C) $45,000
• D)The answer cannot be determined from the information given.

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax, which funds Social Security and Medicare, jointly paid by employees and employers.

Employer

An entity or individual that hires and pays for the services of an employee or contractor.

Withholding Allowances

Amounts that taxpayers can claim to reduce the federal income tax withheld from their paycheck, based on their expected tax deductions and credits.

FICA Taxes

Taxes collected under the Federal Insurance Contributions Act, funding Social Security and Medicare, required to be paid by both employees and employers.