Assuming the parent company owns $80\%$ of the subsidiary company, what effect will the rent of $$10,000$ charged by the subsidiary company to the parent company have on the calculation of the noncontrolling interest $($NCI$)$ in the net income of the subsidiary?

Question $11$Answer

a$.$

There is no effect on the NCI.

b$.$

The NCI will decrease by $$8,000.$

c$.$

The NCI will increase by $$10,000.$

d$.$

The NCI will decrease by $$10,000.$