Use the Following Information to Answer Questions

question 11

Multiple Choice

Use the following information to answer Questions
Parker Company owns 90% of the outstanding common stock of Stagger Company.On January 1, 2014, Stagger Company issued $500,000, 12%, ten-year bonds.
On January 1, 2013, Parker Company paid $315,000 for Stagger Company bonds with a par value of $300,000 and a carrying value of $297,600.Both companies use the straight-line method to amortize bond premiums and discounts.Parker Company accounts for the investment using the cost method of accounting.
-Compute the noncontrolling interest in the 2013 consolidated income assuming that Parker Company reported a net income of $240,000 (includes dividend income from Stagger Company) .Stagger Company reported net income of $150,000 and declared and paid cash dividends of $90,000.

• A)$15,000.
• B)$14,790.
• C)$14,760.
• D)$15,210.
• E)None of these.

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Definitions:

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Emotions and physiological responses related to sexual attraction and desire.

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Psychological strategies unconsciously employed to protect a person from anxiety arising from unacceptable thoughts or feelings.

Reaction Formation

A defense mechanism where an individual behaves in a manner opposite to their actual feelings, often to hide their true emotions.