Simple Company, a 70%-Owned Subsidiary of Punter Corporation, Reported Net

question 2

Multiple Choice

Simple Company, a 70%-owned subsidiary of Punter Corporation, reported net income of $240,000 and paid dividends totaling $90,000 during Year 3. Year 3 amortization of differences between current fair values and carrying amounts of Simple's identifiable net assets at the date of the business combination was $45,000. The noncontrolling interest in net income of Simple for Year 3 was:

• A) $58,500.
• B) $13,500.
• C) $27,000.
• D) $72,000.

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Definitions:

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or experiencing restorative sleep, leading to daytime impairment.

Barbiturate

A class of drugs derived from barbituric acid, acting as a central nervous system depressant, used for sedation, anesthesia, or to treat seizures.

Opiates

A group of drugs derived from opium, used for their analgesic, sedative, and narcotic properties, often prescribed for pain relief but also associated with addiction and abuse.

Tremendous Pain

An intense level of discomfort or suffering, either physical or emotional, often requiring medical or psychological attention.