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:

Classroom Learning

The process of acquiring knowledge and skills within a structured educational environment, often led by a teacher.

Process Consultation

A consulting method in which a third-party adviser helps an organization improve its processes, focusing on interpersonal relationships and problem-solving strategies.

Conflict Resolution

The process of resolving a dispute or conflict by meeting the needs of all parties involved and addressing the underlying issues.

Technological Innovation

The process of developing and implementing new technologies or improving existing ones to meet emerging needs or to create new market opportunities.