Assuming There Are No Excess Amortizations or Other Intra-Entity Transactions

question 88

Multiple Choice

Assuming there are no excess amortizations or other intra-entity transactions, compute the net income attributable to the noncontrolling interest of Devin for 2018.

• A) $126,800.
• B) $130,000.
• C) $122,000.
• D) $130,800.
• E) $129,600.

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Definitions:

Doubtful Accounts

Accounts receivable that a company does not expect to collect fully.

Credit Balance

A credit balance occurs when the total credits in an account exceed the total debits, indicating the amount owed to the account holder or in the case of financial statements, to the creditor.

Factoring

A financial transaction where a business sells its accounts receivable to a third party (factor) at a discount to get immediate cash.

Nontrade Receivables

Amounts owed to a business that are not related to the sale of goods or services, such as tax refunds, advances to employees, or insurance claims.