Gibson Corp

question 25

Multiple Choice

Gibson Corp.owned a 90% interest in Sparis Co.Sparis frequently made sales of inventory to Gibson.The sales, which include a markup over cost of 25%, were $420,000 in 2017 and $500,000 in 2018.At the end of each year, Gibson still owned 30% of the goods.Net income for Sparis was $912,000 during 2018.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 for 2018?

• A) $84,300.
• B) $85,680.
• C) $90,720.
• D) $91,680.
• E) $96,720.

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Definitions:

Voltages

The difference in electric potential between two points, expressed in volts.

Motors

Machines that convert electrical energy into mechanical energy, commonly used for driving machinery.

Three-Phase Motor

An electric motor designed to operate on a three-phase alternating current supply, providing high efficiency and a smooth flow of power.

Lines

Refers to conductors that carry electrical power from one location to another, often used in the context of power transmission and distribution networks.