The Following Is an Extract from the Non-Controlling Interest Memorandum,used

question 2

Multiple Choice

The following is an extract from the non-controlling interest memorandum,used to calculate non-controlling interests.Both subsidiaries became members of the economic entity at the same time at the start of this current period. $$\begin{array} { | l | r | r | r | } \hline & \text { Barbie Ltd } & \text { Ken Ltd } & \text { Total NCl } \\\hline \text { Non-controlling interest in profit after tax } & & & \\\text { Profit as shown in respective entity's reports } & 12000 & 16000 & \\\text { less: Dividend received from entity within group } & ( 2500 ) & & \\ \text { Profit contributed to the economic entity } & 9500 & 16000 & \\\hline \text { Non-controlling interest } & 3800 & 9920 & 13720 \\\hline \begin{array} { l } \text { Non-controlling interest in opening retained earings } \\\text { Opening retained earnings }\end{array} & 15000 & 24000 & \\\hline \text { Non-controlling interest } & 6000 & 9600 & 15600 \\\hline\end{array}$$ What is the non-controlling indirect equity (percentage) interest in Ken Limited?

• A)0%
• B)22%
• C)33%
• D)40%

---

Definitions:

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed.

Adjusting Entries

Entries documented in financial records at the end of each accounting period for the purpose of allotting earnings and expenditures to the timeframe in which they occurred.

Unearned Revenues

Liabilities representing payments received for goods or services that have not yet been delivered or performed.

Liability

Obligations or debts that an entity owes to others, which must be settled through the transfer of assets or services.