Prater Inc

question 98

Multiple Choice

Prater Inc. owned 85% of the voting common stock of Harkin Corp. During 2021, Harkin made several sales of inventory to Prater. The total selling price was $215,000 and the cost was $105,000. At the end of the year, 40% of the goods were still in Prater's inventory. Harkin's reported net income was $400,000. 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 in Harkin?

• A) $51,000.
• B) $53,400.
• C) $60,000.
• D) $66,600.
• E) $32,250.

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Definitions:

Two-Parent Homes

Households in which children live with both of their biological or adoptive parents.

Single-Parent Homes

Households in which children live with only one of their parents due to various reasons, such as divorce, separation, or death of a spouse.

Treatments

In a research context, interventions applied to subjects or conditions to observe effects.

Factors

Variables or elements that contribute to a particular result or situation.