Akers Co Owned 8,000 Shares (80%) of the Outstanding 8%, $100

question 71

Multiple Choice

Akers Co. owned 8,000 shares (80%) of the outstanding 8%, $100 par, preferred stock and 70% of the outstanding common stock of Brickman Co. Assuming there are no excess amortizations or intra-entity transactions, and Brickman reports net income of $810,000, what is the noncontrolling interest in the subsidiary's income?

• A) $146,000.
• B) $156,000.
• C) $170,000.
• D) $219,000.
• E) $235,000.

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Definitions:

Corporate Attorney

A lawyer who specializes in corporate law, representing companies in legal proceedings, advising on legal rights, responsibilities, and obligations.

Performance Bonuses

Additional compensation awarded to employees based on the achievement of specific performance criteria.

Formal Authority

The power or right vested in an individual or role within an organization to make decisions, direct others, and enforce rules.

Organizational Politics

Activities and behaviors within an organization aimed at improving personal status or influence, often at the expense of others or the company.