On January 1, 2021, Doyle Corp

question 91

Multiple Choice

On January 1, 2021, Doyle Corp. acquired 75% of the voting common stock of Bressant Inc. During the year, Doyle sold to Bressant for $510,000 goods that cost $380,000. At year-end, Bressant owned 20% of the goods transferred. Bressant reported net income of $215,000, and Doyle's net income was $902,000. Doyle decided to use the equity method to account for this investment. 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?

• A) $27,750.
• B) $43,000.
• C) $47,250.
• D) $53,750.
• E) $60,250.

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Definitions:

Retributivist

A theory of justice that believes punishment should be proportionate to the crime committed, based on the principle of just desert.

Restorative Justice

An approach to justice that emphasizes repairing the harm caused by criminal behavior through cooperative processes that include all stakeholders.

Social Values

The principles and standards of behavior deemed important and beneficial by a society or community.

Social Solidarity

The sense of community and mutual support that binds members of a society together, often seen as crucial for the stability and functioning of social groups.