On January 1, 2018, Race Corp

question 7

Multiple Choice

On January 1, 2018, Race Corp.acquired 80% of the voting common stock of Gallow Inc.During the year, Race sold to Gallow for $450,000 goods that cost $330,000.At year-end, Gallow owned 15% of the goods transferred.Gallow reported net income of $204,000, and Race's net income was $806,000.Race decided to use the equity method to account for this investment.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?

• A) $ 3,600.
• B) $22,800.
• C) $30,900.
• D) $32,900.
• E) $40,800.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a concern about future events.

Individual Level

Focuses on the behavior, characteristics, and experiences of an individual, as opposed to the dynamics of groups or societal levels.

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Pertains to the basic physical and biological functions that maintain a living organism.

Analysis

The process of examining and breaking information down into smaller components for the purpose of interpretation or explanation.