Your revised approach is still incorrect because it does not properly account for Peta's share of the subsidiary's income in the consolidated net income calculation. Let's go through the correct step-by-step logic again. Step-by-Step Correct Approach 1. Understanding the Consolidated Net Income Total Consolidated Net Income = $320,000 Noncontrolling Interest's (NCI) Share = $30,000 Ownership Structure: Peta owns 80% of the subsidiary. NCI owns 20% of the subsidiary. Subsidiary's Total Net Income is: 30 , 000 0.20 = 150 , 000 0.20 30,000 =150,000 2. Determine Peta's Share of Subsidiary's Net Income 150 , 000 0.80 = 120 , 000 150,0000.80=120,000 3. Compute Peta's Separate Operating Income Peta'sSeparateOperatingIncome = ConsolidatedNetIncome Peta'sShareofSubsidiary'sNetIncome NoncontrollingInterest'sIncome Peta'sSeparateOperatingIncome=ConsolidatedNetIncomePeta'sShareofSubsidiary'sNetIncomeNoncontrollingInterest'sIncome 320 , 000 120 , 000 30 , 000 = 200 , 000 320,000120,00030,000=200,000 Error in Your Calculation Your mistake is incorrectly subtracting the full subsidiary's income ($150,000) from the consolidated net income ($320,000). Consolidated net income already includes Peta's share of the subsidiary's net income ($120,000), so you must subtract only that portion, not the full $150,000. The correct way is to first isolate Peta's share of the subsidiary's net income ($120,000) and then subtract it from the consolidated total. Fi