Question

Regarding the given scenario of Pahm Corporation, Abussi Corporation, and Badock Corporation:

(A question about the amount of income assigned to the noncontrolling shareholders of Abussi Corporation)
What amount of income for the current year is assigned to the noncontrolling shareholders of Abussi Corporation?

Answer 1

The amount of income assigned to the noncontrolling shareholders of Abussi Corporation depends on their ownership percentage.

Step-by-step explanation:

The amount of income assigned to the noncontrolling shareholders of Abussi Corporation for the current year depends on the ownership percentage held by the noncontrolling shareholders. Noncontrolling shareholders are typically entitled to a portion of the company's net income based on their ownership percentage. This is usually determined by multiplying the net income of the company by the noncontrolling shareholders' ownership percentage.

For example, if the net income of Abussi Corporation is $1,000,000 and the noncontrolling shareholders collectively own 20% of the company, then the noncontrolling shareholders would be assigned $200,000 ($1,000,000 * 0.20) as their portion of the income.