Alpha Corporation Owns 100% of Beta Company, and Beta Owns

question 20

Multiple Choice

Alpha Corporation owns 100% of Beta Company, and Beta owns 80% of Gamma, Inc., all of which are domestic corporations. There were no excess allocation values at the date of acquisition of the subsidiaries. Information for the three companies for the year ending December 31, 2021 follows: What is the net income attributable to the noncontrolling interest in Gamma for 2021?

• A) $0.
• B) $9,600.
• C) $10,000.
• D) $19,200.
• E) $20,000.

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Definitions:

Multiple Regression Model

The mathematical equation that describes how the dependent variable y is related to the independent variables x1, x2, . . . , xp and an error term e.

Independent Variable

The variable that is doing the predicting or explaining. It is denoted by x.

Dependent Variable

A variable in statistical modeling, analysis, or experimentation that is influenced by other variables, commonly known as independent variables.

Normally Distributed

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.