The noncontrolling interest line item on the income statement represents ________.
A)the portion of the subsidiary owned by others,which is deducted to determine net income
B)the portion of the subsidiary owned by the reporting entity,which is added to determine net income
C)the portion of earnings owned by the reporting entity,which is deducted to determine net income
D)the portion of earnings that belongs to others,which is added to determine net income

Question

Quizplus · Accepted Answer

Noncontrolling interest represents the portion of a subsidiary owned by others, which is deducted to determine net income. This is because net income reflects only the amount earned by the controlling interest in the subsidiary, and the noncontrolling interest is not entitled to that portion of earnings.

The Noncontrolling Interest Line Item on the Income Statement Represents