How is noncontrolling interest on the income statement calculated?

The calculation of noncontrolling interest on the income statement is based on the net income attributable to the noncontrolling shareholders in a subsidiary. Option A accurately describes this process by stating that the net income of the subsidiary is multiplied by the percentage of noncontrolling interest. This means that if a parent company owns a significant portion of a subsidiary but not all, the share of the subsidiary's net income that is attributable to the noncontrolling interest must be recognized in the consolidated financial statements.

For example, if a subsidiary earns $1 million in net income and the parent company has a 70% ownership stake, the noncontrolling interest, which pertains to the 30% of the subsidiary not owned by the parent, would receive 30% of that income. Therefore, the calculation would be $1 million x 30%, resulting in $300,000 reported in the income statement as attributable to noncontrolling interest.

The other options do not correctly represent the calculation for noncontrolling interest in the context of the income statement. Total revenue, subsidiary assets, or dividends do not provide a measure of income attributable to the noncontrolling interest, making them inappropriate for this specific calculation.