Use the Following Information to Answer the Question(s) Below

question 28

Multiple Choice

Use the following information to answer the question(s) below.

Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased at book value. The separate net incomes of Pahm, Abussi, and Badock (excluding investment income) for the year are $200,000, $240,000, and $260,000, respectively. There were no fair value/book value differences in the assets and liabilities of Pahm, Abussi and Badock.


-Controlling interest share of consolidated net income for the current year is

• A)$504,800.
• B)$516,800.
• C)$545,200.
• D)$557,200.

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Definitions:

Random Sampling

A method of selecting a sample from a population in which every individual has an equal chance of being chosen.

Correlation Coefficient

A number between −1.00 and +1.00 that indicates the direction (negative or positive) and extent (from none to perfect) of the relationship between two variables.

Independent Variable

In research, this is the condition or factor that is intentionally changed to observe its impact on an outcome.

Structuralism

The school of psychology that argues that the mind consists of three basic elements—sensations, feelings, and images—that combine to form experience.