Peta Corporation and its subsidiary reported consolidated net income of $320,000 for the year ended December 31,20X8.Peta 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 Peta for the year?
A)$170,000
B)$150,000
C)$120,000
D)$200,000

Question

Quizplus · Accepted Answer

Peta's share of consolidated net income is 80% x $320,000 = $256,000.  Peta's separate operating income is $256,000 - $30,000 = $226,000.

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