Prater Inc

question 108

Multiple Choice

Prater Inc. owned 85% of the voting common stock of Harkin Corp. During 2021, Prater made several sales of inventory to Harkin. The total selling price was $215,000 and the cost was $105,000. At the end of the year, 40% of the goods were still in Harkin's inventory. Harkin's reported net income was $400,000. 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 in Harkin?

• A)$51,000.
• B)$53,400.
• C)$60,000.
• D)$66,600.
• E)$32,250.

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Definitions:

Anticipatory Socialization

The process of preparing for future changes in roles or norms, often through rehearsal or simulation.

Organizational Culture

The unwritten, collective mindset and values that influence how people within an organization interact and work together.

Dysfunctions

Negative consequences or undesirable effects that result from organizational behaviors or structures.

Feldman's Organizational Socialization

A framework describing how new employees acquire the necessary knowledge, behaviors, and skills to become effective organizational members.