The Net Incomes for Parent and Sub Inc for the Year

question 7

Multiple Choice

The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. What would be the amount of Non-Controlling Interest appearing on the Consolidated Balance Sheet on the date of acquisition (August 1, 2012) , under the Parent Company Method, assuming once again that Parent purchased 80% of Sub Inc. for $180,000?

• A) $26,000
• B) $72,000
• C) $86,000
• D) The answer cannot be determined from the information given.

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Definitions:

Condom

A thin rubber sheath worn on a man's penis during sexual intercourse as a contraceptive or as a protection against infection.

Monogamous

Referring to a relationship or marriage with one partner at a time, or the practice of having only one sexual partner.

Birth Control

A method or device used to prevent pregnancy.

Latex Condom

A barrier device made from latex used during sexual intercourse to reduce the probability of pregnancy and the spread of sexually transmitted infections (STIs).