Chapter 3, Problem 3.16E

A.

To determine

Non-Controlling Shareholders:

The shareholders of the subsidiary company other than parent company are known as “Non-Controlling shareholders” and their share of income and assets of the subsidiary is known as “Non-Controlling Interest”.

The income of a subsidiary is assigned to the parent company and the non-controlling shareholders on the basis of percentage of their ownership of subsidiary.

Calculation of Net income reported by Corporation L for 2002.

B.

To determine

Stockholders’ Equity

Stockholders’ Equity is the total amount of capital given to a company by its shareholders in exchange of stock, plus any donated capital or retained earnings.

Preparation of stockholders’ equity section of Corporation L balance sheet at 31 December 2002.