Reference no: EM132565561

Question - In a classroom discussion of the display, in a consolidated balance sheet, of the minority interest of preferred stockholders in the net assets of a subsidiary, student Ross suggested that such a minority interest differs from the minority interest of common stockholders, and thus possibly warrants display in the "mezzanine" section between liabilities and stockholders' equity. Student Kerry disagrees; she maintains that the term minority applies to preferred stockholders as well as common stockholders other than the parent company; both minority interests are part of consolidated stockholders' equity.

Instructions - Do you support the position of student Ross or of student Kerry? Explain.