Answer
a.
The loss (which is net of tax) is to be reported in a separate category within the income statement. Specifically, the loss should come under the continuing operations, which will be deducted from the total income from continuing operations to arrive at the net income.
b.
The noncontrolling interest appears below the net income. The amount allocated to noncontrolling interest is deducted from consolidated net income, which occurs at the bottom end of the income statement.
Work Step by Step
a.
The loss (which is net of tax) is to be reported in a separate category within the income statement. Specifically, the loss should come under the continuing operations, which will be deducted from the total income from continuing operations to arrive at the net income.
b.
The noncontrolling interest appears below the net income. The amount allocated to noncontrolling interest is deducted from consolidated net income, which occurs at the bottom end of the income statement.
