The amount of Non-Controlling Interest on Big Guy's consolidated balance sheet on July 1, 2017 would be:
A) $0.
B) $88,000.
C) $90,000.
D)$270,000.

Question

Quizplus · Accepted Answer

Non-Controlling Interest (NCI) is calculated as the percentage of the subsidiary not owned by the parent company, multiplied by the subsidiary's equity. If Big Guy owns 90% of the subsidiary, then NCI is 10% of the subsidiary's equity. If the subsidiary's total equity is $900,000, then NCI is 10% of $900,000, which is $90,000.

The Amount of Non-Controlling Interest on Big Guy's Consolidated Balance