Prater Inc

question 5

Multiple Choice

Prater Inc. owned 85% of the voting common stock of Harkin Corp. During 2021, Prater made several sales of inventory to Harkin. 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 Harkin'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:

Age Range

The span of years that separates the youngest from the oldest members of a population or group.

Outwardly Directed

Referring to actions or behaviors focused on external environments or people rather than oneself.

Tertiary Circular Reactions

Advanced repetitive actions in infants aged 12-18 months, characterized by experimentation and exploration to achieve desired outcomes.

Sensorimotor Development

Sensorimotor development refers to the stage in early childhood where learning occurs through sensory experiences and manipulating objects.