Peter Limited Has an Ownership Interest of 80% in a Subsidiary

question 49

Multiple Choice

Peter Limited has an ownership interest of 80% in a subsidiary John Limited. John Limited owns 60% of Joseph Limited. At acquisition date the retained earnings of Joseph Limited were $200 000. At consolidation date, the retained earnings of Joseph Limited were $440 000. The indirect non-controlling interest in the retained earnings of Joseph Limited is calculated as:

• A) $0.
• B) $24 000.
• C) $28 800.
• D) $52 800.

Understand the functions of cell membranes and the importance of selective permeability.

Relate microscopic observations to cell structure and function.

Understand the concept and legal implications of battery and assault in tort law.

Recognize the principles underlying false imprisonment and its defense mechanisms.

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Definitions:

Crowding-Out Effect

Describes a situation in economics where increased public sector spending reduces or eliminates private sector spending, often due to higher interest rates or borrowed funds.

Private Saving

The portion of individual or household income that is not spent on consumption but saved for future use.

Private Investment

The expenditure by businesses on capital goods, such as machinery and buildings, and changes in inventories.

Crowding-Out Effect

A situation where increased government spending leads to a reduction in private sector investment.