The parent owns 60% of the subsidiary.
The subsidiary’s net income is 65.
Question:
The incremental effect on the parent’s net income from its investment in the subsidiary is: ?
A) 39
B) 45
C) 65
no tricks, not really.
I know for myself, when I see consolidation method I usually consolidate revenues and expenses, but now I know that I have to subtract the minority interest from net income