Phillip Limited Has an Ownership Interest of 75% in a Subsidiary

question 8

Multiple Choice

Phillip Limited has an ownership interest of 75% in a subsidiary Jacob Limited. Jacob Limited owns 80% of Baxter Limited. At acquisition date the retained earnings of Baxter Limited were $300 000. At consolidation date, the retained earnings of Baxter Limited were $840 000. The indirect non-controlling interest in the retained earnings of Baxter Limited is:

• A) $0
• B) $108 000
• C) $168 000
• D) $324 000

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Definitions:

Survival Value

The significance of behaviors in increasing an organism's chance of survival and reproduction.

Helping Behaviors

Refers to actions taken to benefit another person or group without expecting anything in return.

Drive-Reduction Theory

A theory in psychology that explains motivation as being rooted in the desire to reduce internal tensions caused by unmet biological needs.

Internal Tension

Psychological stress or discomfort that arises from conflicting beliefs, thoughts, or feelings within oneself.