On January 1, 2021, Doyle Corp

question 91

Multiple Choice

On January 1, 2021, Doyle Corp. acquired 75% of the voting common stock of Bressant Inc. During the year, Doyle sold to Bressant for $510,000 goods that cost $380,000. At year-end, Bressant owned 20% of the goods transferred. Bressant reported net income of $215,000, and Doyle's net income was $902,000. Doyle decided to use the equity method to account for this investment. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest?

• A) $27,750.
• B) $43,000.
• C) $47,250.
• D) $53,750.
• E) $60,250.

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Definitions:

SMI

Severe Mental Illness; a term used to describe a mental disorder that significantly impairs one's ability to function in daily life over a prolonged period.

Psychotherapy

A form of therapy involving psychological methods, principally when conducted with individuals or groups, to treat mental health problems.

Vocational Rehabilitation

A process aimed at enabling persons with disabilities, health conditions, or social disadvantages to secure and retain employment.

Psychoeducational

Relating to educational approaches aimed at enhancing psychological understanding or well-being.