If the partial equity method had been applied, what was 2018 consolidated net income?
A) $840,000.
B) $768,400.
C) $822,000.
D) $240,000.
E) $600,000.

Question

Quizplus · Accepted Answer

If the partial equity method had been applied, the consolidated net income for 2018 would have been $822,000.

Calculation:
Consolidated net income using partial equity method = Parent's net income + (Parent's share in subsidiary's net income * Non-controlling interest percentage)
Consolidated net income using partial equity method = $600,000 + ($240,000 * 40%) = $822,000

If the Partial Equity Method Had Been Applied, What Was