Will Co Owned 80% of the Voting Common Stock of Carlton

question 113

Multiple Choice

Will Co. owned 80% of the voting common stock of Carlton Co. During 2020, Carlton made frequent sales of inventory to Will. There was deferred intra-entity gross profit of $50,000 in the beginning inventory and $30,000 of intra-entity gross profit at the end of the year. Carlton reported net income of $173,000 for 2020. Will decided to use the equity method to account for the investment. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what is the net income attributable to the noncontrolling interest for 2020?

• A) $28,600.
• B) $30,600.
• C) $34,600.
• D) $38,600.
• E) $50,600.

Understand the concept of operant learning theory and its application in organizational behavior.

Explain the role of feedback in performance improvement and how it can be effectively provided.

Grasp the principles of social cognitive theory, including triadic reciprocal causation.

Understand self-regulation and goal-setting theory, including its implications for motivation and behavior change.

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Definitions:

Long Projects

Long projects refer to investments or initiatives with a duration that extends over a long period, often requiring considerable upfront costs and extensive planning.

Risk Variability

The degree of uncertainty or potential financial loss inherent in an investment decision.

Capital Projects

Long-term investment projects undertaken by a business or organization, typically involving the development or maintenance of infrastructure.

Management's Expectations

The forecasts or outlooks on future business performance, operational results, or financial conditions as projected by a company's management.