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:

Total Opportunity Cost

The sum of all the benefits that could have been received from the next best alternative option that was not chosen.

JIT Point

A strategy where materials, goods, and even labor are delivered or acquired just in time to be used, reducing storage and inventory costs.