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Unformatted text preview: Subsidiary reported net income $125,000 Less: Fair value to book value amortization 20,000 Adjusted net income of subsidiary 105,000 Noncontrolling interest percentage 20% Noncontrolling interest share of subsidiary net income $ 21,000 C. In order to report the noncontrolling interest’s share, overall consolidated net income is first determined. This amount is then allocated between the noncontrolling and controlling interests. For example, let’s assume the following: Consolidated revenues $422,000 Consolidated expenses 203,000 Consolidated net income $219,000 Allocated to noncontrolling interest 21,000 Allocated to controlling interest $198,000...
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This note was uploaded on 03/08/2012 for the course ACCT 401 taught by Professor Staff during the Summer '08 term at Texas A&M.
- Summer '08