Question

Michel Company owns 75% of the outstanding common stock of Aber Corp. On its current consolidated income statement, Michel Company should report:

Answer 1

Answer:

Michel Company

On its current consolidated income statement, Michel Company should report:

the consolidated revenue and expenses of Michel Company and Aber Corp.

Explanation:

There is a 25% (100% - 75%) share for non-controlling or minority interest in the net income or loss of the Aber Corp.  With this, readers of the financial statements of the parent company, Michel Company, are well-informed that only 75% of the net income or loss from the Aber Corp. actually belongs to the stockholders of Michel Company.