Company A owns B 80% =>B is fully owned subsidiary
Company B owns C 30% =>B is using equity method for C
Now C pays 1000 dividend. Could anyone tell what’s the expected consolidation result for this?
If the result is
Minority Interest -60
Is this correct?
If they own only 80% of B, B is not a fully owned subsidiary.
Fully owned is 100%.
You are right. It’s partially owner. The main question here is how to calculate the minority interest in such case. Do you know what’s the expect result? Thanks.
I’d say that your result seems correct.
In any case, it won’t appear on the Level II CFA exam.