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Homework answers / question archive / Prescott Corp
Prescott Corp. owned 90% of Bell Inc., while Bell owned 10% of the outstanding common shares of Prescott. No goodwill or other allocations were recognized in connection with either of these acquisitions. Prescott reported operating income of $266,000 for 2013 whereas Bell earned $98,000 during the same period. No investment income was included within either of these income totals. On a consolidated income statement, what is the non-controlling interest in Bell's net income?
a. 9,800
b. 13,692
c. 10,836
d. 12,460
e. 11,214
The non-controlling interest in Bell's net income will be Bell’s Income multiplied by the Non-Controlling Interest share (10%)
The non-controlling interest in Bell's net income = 98,000 * 10%
= $9,800
Option $9,800 is the correct option
