Able Company Owns an 80% Interest in Barns Company and a 20

question 27

Short Answer

Able Company owns an 80% interest in Barns Company and a 20% interest in Carns Company. Barns owns a 40% interest in Carns Company. The reported income of Carns is $20,000 for 20X4. Which of the following shows how it will be distributed?

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Definitions:

Firm's Willingness

The degree to which a company is prepared to produce goods or services at a certain price.

Market Price

The price at which a product or service is sold in the open market.

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the actual amount they spend, indicating the value gained by consumers.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a particular price point, within a specific time period.