Compute the Noncontrolling Interest in the Net Income of Demers

question 100

Multiple Choice

Compute the noncontrolling interest in the net income of Demers at December 31, 2021.

• A) $20,400.
• B) $24,600.
• C) $26,000.
• D) $14,000.
• E) $12,600.

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Definitions:

Homemade Leverage

A strategy whereby investors adjust the financial leverage of their investment by borrowing or lending money on their own, rather than relying on the leverage inherent in their investments.

Financial Leverage

The use of borrowed funds (debt) to amplify the potential return on investment.

Personal Borrowing

Personal borrowing involves an individual obtaining funds from a lender (such as a bank or financial institution) for personal use, which could range from purchasing a home to funding education.