If Smith's Net Income Is $100,000 in the Year Following

question 71

Multiple Choice

If Smith's net income is $100,000 in the year following the acquisition,

• A) The portion allocated to the common stock (residual amount) is $92,800.
• B) $10,800 preferred stock dividend will be subtracted from net income attributed to common stock in arriving at noncontrolling interest in consolidated income.
• C) The noncontrolling interest in consolidated net income is $27,200.
• D) The preferred stock dividend will be ignored in noncontrolling interest in consolidated net income because Nichols owns the noncontrolling interest of preferred stock.
• E) The noncontrolling interest in consolidated net income is $30,800.

---

Definitions:

External Messages

Information or communication originating from outside an individual or organization, influencing or informing them.

Readers

Individuals who engage in the act of reading to acquire information or for pleasure.

You-attitude

A communication style that focuses on the receiver's perspective and interests, often used to enhance effectiveness in business writing and publicity.

Audience Oriented

Focusing on the preferences, interests, and characteristics of the target audience for a message or product.