Stanger Company Owns 85% of the Outstanding Stock of Willden

question 58

Multiple Choice

Stanger Company owns 85% of the outstanding stock of Willden Company. At the end of the year, Willden Company reported revenues of $2,500 and expenses of $1,800. How much minority interest will be reported on Stanger Company's financial statements?

• A) $700
• B) $105
• C) $595
• D) $0

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Definitions:

Existing Partnership

A business entity owned by two or more people that has not been dissolved or restructured, continuing its operations as initially agreed.

Capital Balances

The amounts of money or value of other assets owned by a company or individual, often reflective of equity or investment in business.

Income Ratios

Metrics used to evaluate a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.

Bonus

Additional compensation given to employees as an incentive or reward beyond their regular salary.