Petunia Company Acquired an 80% Interest in Shaman Company in 2016

question 18

Multiple Choice

Petunia Company acquired an 80% interest in Shaman Company in 2016. In 2017 and 2018, Shaman reported net income of $400,000 and $480,000, respectively. During 2017, Shaman sold $80,000 of merchandise to Petunia for a $20,000 profit. Petunia sold the merchandise to outsiders during 2018 for $140,000. For consolidation purposes, what is the noncontrolling interest's share of Shaman's 2017 and 2018 net income?

• A) $90,000 and $96,000.
• B) $100,000 and $76,000.
• C) $84,000 and $92,000.
• D) $76,000 and $100,000.

---

Definitions:

Therapeutic Methods

Diverse techniques and approaches used in therapy to treat psychological problems and disorders, aiming to improve mental health and well-being.

Interpersonal Therapeutic Factors

Elements within therapeutic relationships that contribute to healing and growth, such as empathy, trust, and mutual respect.

Premature Termination

The ending of a process or service earlier than planned or before its natural conclusion, often used in the context of therapy or contracts.

Casualties

Refers to individuals who are injured, killed, or otherwise incapacitated as a result of accidents, natural disasters, or military action.