Norek Corp

question 17

Multiple Choice

Norek Corp.owned 70% of the voting common stock of Thelma Co.On January 2, 2017, Thelma sold a parcel of land to Norek.The land had a book value of $32,000 and was sold to Norek for $45,000.Thelma's reported net income for 2017 was $119,000.Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what is net income attributable to the noncontrolling interest?

• A) $35,700.
• B) $31,800.
• C) $39,600.
• D) $22,200.
• E) $26,100.

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Definitions:

Rational Consideration

The process of making decisions based on logical inference, facts, and analysis rather than emotions or intuition.

Scientific Management

A management theory that examines and combines different workflows to enhance economic effectiveness and increase workforce productivity.

Supervisory Support

The guidance, assistance, and resources provided by supervisors to help employees achieve job-related goals.

Contingency Theory

A management theory that suggests the most appropriate form of organizational structure or managerial action depends on the specific situational variables.