All categories

2 years ago

How is the noncontrolling interest in a subsidiary company calculated as of the end of a reporting period?

1 answer:

7 0

The noncontrolling interest in a subsidiary company is calculated at the end of a reporting period by multiplying the subsidiaries’ net income by the noncontrolling interest percentage.

A noncontrolling interest (NCI), or a minority interest, is a situation in which the shareholders own less than 50% of the outstanding shares and thus have no say in the decision-making process.

At the end of a reporting period, the NCI is calculated by taking the NCI percentage and multiplying it with the net income of the subsidiary. For example, if a minority partner owns 30% in the subsidiary, and the subsidiary’s net income is $ 2 million, the NCI will be $ 2 million multiplied by 30%, which is $600,000.

To learn more about noncontrolling interest (NCI): brainly.com/question/13635396

#SPJ4

You might be interested in

If customer satisfaction is a criterion for decision making, then customer satisfaction

jonny [76]

I’m going to go with b. Will be considered in the decision making process.

I looked up the definition of criterion and it means a principle or standard which maybe judged or decided. It’s not the ONLY thing that’s required.

3 0

3 years ago

Read 2 more answers

Debt: 5,000 7.2 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 108 percent of par; the bo

Tju [1.3M]

Answer:

outstanding, $1,000 par value, 30 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 440,000 shares outstanding, selling for $62 per share; the beta is 1.05. Market: 11 percent market risk premium and 5.2 percent risk-free rate. What is the company's WACC

4 0

3 years ago

An individual taxpayer reported the following net long-term capital gains and losses:Year Gain (loss)1 ($5,000)2 1,0003 4,000The

Leona [35]

Answer:

A) 4000

Explanation:

Long term capital losses cannot be set of against the long term capital gains of next year

As a result an individual taxpayer should report in the

year 3 is $4000

5 0

3 years ago

The spaghetti sells 340 units per week at $12 per plate. The steak sells 212 units at $16 per plate. Which has the higher

stepan [7]

Answer:

a) Spaghetti

Explanation:

Dollar value means the actual amount raised from selling. In this case,

spaghetti will have dollar sales of:

=340 x $12

=$4,080

Steak

=212 x $16

=$3,392

Therefore, spaghetti has higher dollar sales.

4 0

2 years ago

Beginning inventory $ 34,000 Inventory purchases (on account) 164,000 Freight charges on purchases (paid in cash) 19,000 Invento

sukhopar [10]

Answer:

Journal entries - Perpetual inventory system

Inventory purchases (on account) 164,000

Inventory $ 164000(debit)

Trade Payables $ 164000 (credit)

Freight charges on purchases (paid in cash) 19,000

Freight Charges $ 19000 (debit)

Bank $19000 (credit)

*****Freight Charges forms part of cost of Inventory (IAS 2) therefore write off freight cost to Inventory Account****

Inventory $19000 (debit)

Freight Charges $ 19000 (credit)

Inventory returned to suppliers (for credit) 21,000

Trade Payable $ 21000 (debit)

Inventory $21000(credit)

Sales (on account) 259,000,

Trade Receivables $ 259000 (debit)

Revenue $259000(credit)

Cost of inventory sold 157,000

Cost of Sales $157000 (debit)

Inventory $157000 (credit)

Journal entries - Periodic inventory system

Inventory purchases (on account) 164,000

Inventory $ 164000(debit)

Trade Payables $ 164000 (credit)

Freight charges on purchases (paid in cash) 19,000

Freight Charges $ 19000 (debit)

Bank $19000 (credit)

*****Freight Charges forms part of cost of Inventory (IAS 2) therefore write off freight cost to Inventory Account****

Inventory $19000 (debit)

Freight Charges $ 19000 (credit)

Inventory returned to suppliers (for credit) 21,000

Trade Payable $ 21000 (debit)

Inventory $21000(credit)

Sales (on account) 259,000,

Trade Receivables $ 259000 (debit)

Revenue $259000(credit)

Cost of inventory sold 157,000

Cost of Sales $157000 (debit)

Inventory $157000 (credit)

Explanation:

Inventory purchases (on account) 164,000

Recognise an Asset - Inventory and a liability - Account payable

Freight charges on purchases (paid in cash) 19,000

Recognise an expense - Freight Charges and de-recognise asset - Bank

*****Freight Charges forms part of cost of Inventory (IAS 2) therefore write off freight cost to Inventory Account****

Derecognise expense- Freight and recognise an asset - Inventory

Inventory returned to suppliers (for credit) 21,000

De-recognise Asset - Inventory and De-recognise Liability - Account Payable

Sales (on account) 259,000,

Recognise Asset - Trade Receivable and Recognise Revenue

Cost of inventory sold 157,000

Recognise expense - Cost of Sale in Profit and Loss and De-recognise Asset- Inventory

6 0

3 years ago