Pinta Company Acquired an 80% Interest in Strummer Company on January

question 14

Multiple Choice

Pinta Company acquired an 80% interest in Strummer Company on January 1, 2013, for $270,000 cash when Strummer Company had common stock of $150,000 and retained earnings of $150,000.All excess was attributable to plant assets with a 10-year life.Strummer Company made $30,000 in 2013 and paid no dividends.Pinta Company's separate income in 2013 was $375,000.Controlling interest in consolidated net income for 2013 is:

• A)$405,000.
• B)$399,000.
• C)$396,000.
• D)$375,000.

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Definitions:

Food Production

The processes involved in creating food products from raw materials through agriculture, husbandry, or aquaculture, meeting the dietary needs of populations.

Earth's Environment

Comprises all the external factors influencing the life and ecosystems on the planet, including climate, land, water, and living organisms.

Intensive Crop Cultivation

A farming practice that aims to maximize agricultural output from a given piece of land through the use of technologies, pesticides, and fertilizers.