The incremental effect on the parent's net income from its investment in the subsidiary is: ?
A) 39
B) 45
C) 65
Edited 1 time(s). Last edit at Monday, April 26, 2010 at 11:53AM by CFA.Rhythm.作者: WarrenB1 时间: 2011-7-11 19:25
39:
40% to the minority interest, 60% to the parent作者: redskins44 时间: 2011-7-11 19:25
that is exactly correct. nice work.作者: senlinlang 时间: 2011-7-11 19:25
I thought this was a trick Q somehow as well, I read every word very carefully and still expected to get it wrong somehow. I wish all CFAI Q's were like this - very straight to the point.作者: tarunajwani 时间: 2011-7-11 19:25
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作者: sameeragarwal 时间: 2011-7-11 19:25
yes...just remember net income is the bottom line for the I/S
