Barking Power Corporation Acquired 80% of the Voting Common Shares

question 38

Essay

Barking Power Corporation acquired 80% of the voting common shares of Brighton Beach Corporation on December 31,2016.During the year ended December 31,2017,Barking Power Corporation and Brighton Beach Corporation reported net income of $110,000 and $75,000 from their own operations,respectively.
a.How much income attributable to the equity holders of the parent corporation will be reported on the consolidated income statement for the year ended December 31,2017?
b.Discuss the way in which non-controlling interests in the subsidiary might be presented on consolidated financial statements.What exactly does non-controlling interest represent?

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Definitions:

Overestimate

To assess something at a higher value or quantity than it actually possesses.

Underestimate

The act of judging something to be less in quantity or importance than it actually is.

Open Book Policy

A business practice where a company shares detailed financial and operational information openly with its employees to foster transparency and inclusivity.

Systematic Mis-estimates

Biased or erroneous assessments that occur in a predictable pattern due to cognitive or procedural errors.