1. An 80%-owned subsidiary sells land to its parent at a gain of $100,000. The following year, the parent sells the land to an outside entity for a gain of $10,000. How is the noncontrolling interest in net income affected in the year the parent sells the land? A. Increase of $20,000 B. No effect C. Decrease of $22,000 D. Decrease of $2,000

B. No effect

Explanation: A non controlling interest is that part of the share of a subsidiary company that the parent company has not claim to its ownership. This is different from a controlling interest which means it is the part of the subsidiary of a parent company,that the parent company owns.

THERE WILL BE NO EFFECT ON THE NONCONTROLLING INTEREST IN NET INCOME IN THE YEAR THE PARENT COMPANY SELLS THE LAND.

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.