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:

Alimentary Canal

The alimentary canal is the whole passage along which food passes through the body from mouth to anus, including the esophagus, stomach, and intestines, digesting and absorbing food along the way.

Esophagus

The muscular tube that transports food from the throat to the stomach by a series of coordinated muscle movements.

Oral Cavity

The mouth’s interior space, including the lips, gums, front portion of the tongue, and teeth, which plays a role in speech, digestion, and respiration.

Splenic Flexure

The part of the large intestine that connects the transverse colon to the descending colon, located near the spleen.