Question

Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary.

Account	Dr (Cr)
Current assets	$ 4,000
Property, net	95,000
Intangible assets, net	15,000
Goodwill	100,000
Liabilities	(180,140)
Capital stock	(10,000)
Retained earnings, beginning	(16,000)
Accumulated other comprehensive income, beginning	(500)
Noncontrolling interest	(2,000)
Dividends	500
Sales revenue	(390,000)
Cost of sales and operating expenses	385,000
Other comprehensive income	(1,000)
Noncontrolling interest in net income	150
Noncontrolling interest in other comprehensive loss	(10)
Total	$ 0

On the consolidated statement of income and comprehensive income, consolidated net income for the year is:

	A.	$5,150
	B.	$4,850
	C.	$5,000
	D.	$6,000

Answer 1

Compute consolidated net income for the year is:

	Amount
Sales revenue	$390,000
Cost of sales and operating expenses	($385,000)
Non controlling interest in net income	($150)
Net Income	$4,850

Hence, the correct option is [B]