Hudson Corp

question 89

Multiple Choice

Hudson Corp. owned a 85% interest in Martin Co. Martin frequently made sales of inventory to Hudson. The sales, which include a markup over cost of 25%, were $460,000 in 2020 and $520,000 in 2021. At the end of each year, Hudson still owned 40% of the goods. Net income for Martin was $932,000 during 2021. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest for 2021?

• A) $128,040.
• B) $137,550.
• C) $139,080.
• D) $139,800.
• E) $151,560.

---

Definitions:

Relief

refers to legal remedies or aid provided through the court system to a person or entity that experiences harm or a legal wrong, aiming to restore rights or compensate losses.

Chapter 12 Bankruptcy

A type of bankruptcy specifically designed for family farmers and fishermen, allowing them to restructure their finances and pay off their debts over a period of time.

Farm Related

Pertaining to agriculture and activities directly connected to farming and cultivation.

Insolvent

The condition of being unable to pay debts as they fall due, or having liabilities exceed assets.