Company P holds 900 shares of the 1,000 outstanding common shares of Company S. Today, Company S issues to non-parent investors 500 shares of common stock for $2,000 in cash. Right before the equity carve out, Company S's book value of net assets was $5,000. Assume that the companies were not involved in any intercompany transactions and all the AAP initially recognized was fully amortized.

Does Company P retain control after the transaction?

Use the information in the previous question.

What effect will this issuance of common stock by Company S have on noncontrolling interest reported on the consolidated financial statements by Company p? (Hint: compare NCI equity before and after the equity carve out.)