Barking Power Corporation Acquired 80% of the Voting Common Shares

question 43

Essay

Barking Power Corporation acquired 80% of the voting common shares of Brighton Beach Corporation on December 31, 2014. During the year ended December 31, 2015, 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, 2015?
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:

Cycle Time Length

The total time from the beginning to the end of your process, as defined by you and your customer. It measures the time taken to complete a single process cycle effectively.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Profitability

An indicator of a business's ability to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Order Management Process

A sequence of steps designed to effectively take, process, and fulfill orders to customer specifications, ensuring a cohesive flow from receipt to delivery.