Zeta Corporation and its subsidiary reported consolidated net income of $320,000 for the year ended December 31,20X8.Zeta owns 80 percent of the common shares of its subsidiary,acquired at book value.Noncontrolling interest was assigned income of $30,000 in the consolidated income statement for 20X8.What is the amount of separate operating income reported by Zeta for the year?
A) $170,000
B) $150,000
C) $120,000
D) $200,000

Question

Quizplus · Accepted Answer

Zeta's separate operating income is calculated as consolidated net income minus the noncontrolling interest's share of income. The noncontrolling interest's share of income is 20% of the consolidated net income, or $30,000. Therefore, Zeta's separate operating income is $320,000 - $30,000 = $290,000.

Zeta Corporation and Its Subsidiary Reported Consolidated Net Income of $320,000