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标题: Interesting Intercorporate Investments Question [打印本页]

作者: brazilatz    时间: 2013-4-7 05:02     标题: Interesting Intercorporate Investments Question

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
作者: JonnyKay    时间: 2013-4-7 05:03

39:
40% to the minority interest, 60% to the parent
作者: Analyze_This    时间: 2013-4-7 05:07

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




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