Noncontrolling interest share of earnings is:
A)the total earnings of unconsolidated subsidiaries.
B)earnings based on the percent of holdings by parent company of unconsolidated subsidiaries.
C)the total earnings of consolidated subsidiaries.
D)earnings based on the percent of holdings by outside owners of consolidated subsidiaries.
E)none of the answers are correct.

Question

Quizplus · Accepted Answer

Noncontrolling interest share of earnings refers to the portion of earnings that belongs to outside owners of consolidated subsidiaries. This is determined based on their percentage of ownership in the subsidiary. Option (D) correctly identifies this definition. Options (A), (B), and (C) are incorrect as they refer to total earnings of unconsolidated subsidiaries, earnings based on the parent company's percentage of holdings in unconsolidated subsidiaries, and total earnings of consolidated subsidiaries, respectively.

Noncontrolling Interest Share of Earnings Is