X-Beams Inc

question 47

Multiple Choice

X-Beams Inc.owned 70% of the voting common stock of Kent Corp.During 2018, Kent made several sales of inventory to X-Beams.The total selling price was $180,000 and the cost was $100,000.At the end of the year, 20% of the goods were still in X-Beams' inventory.Kent's reported net income was $300,000.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 Kent?

• A) $90,000.
• B) $85,200.
• C) $54,000.
• D) $94,800.
• E) $86,640.

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Definitions:

Satisficing Decision

A decision-making process that seeks a satisfactory rather than an optimal solution, prioritizing adequate over perfect results due to limitations.

Acceptable Alternative

An option deemed suitable or satisfactory for achieving a goal, often considered in decision-making processes.

Optimizing Decision

The process of finding the most effective solution among various choices, with the aim of achieving the best possible outcome.

Well-Defined Problem

A problem with clearly specified goals, constraints, and criteria for evaluating solutions, making it easier to identify potential solutions.