If a firm consolidates subsidiaries that are not wholly owned,an income statement item is created that is termed:
A)dividend income.
B)minority share of earnings.
C)equity income.
D)extraordinary.
E)gain from sale of subsidiary.

Question

Quizplus · Accepted Answer

When a firm consolidates subsidiaries that are not wholly owned, a portion of the income generated by these subsidiaries will be attributed to the minority shareholders who own the remaining portion of the subsidiary. This item in the income statement is called the minority share of earnings.

If a Firm Consolidates Subsidiaries That Are Not Wholly Owned,an