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

question 17

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.


-The amount of income for the current year assigned to the noncontrolling shareholders of Abussi Corporation is

• A)$48,000.
• B)$53,200.
• C)$74,000.
• D)$79,200.

---

Definitions:

Depression

A mental health condition marked by an overwhelming feeling of sadness, isolation, and despair that interferes with daily functioning and quality of life.

Extinguish Fear

In psychology, the process of reducing or eliminating the fear response through repeated exposure to the feared object, situation, or thought without any negative consequences.

Biological Perspective

An approach in psychology that examines psychological disorders and behaviors based on biological factors, including genetics, brain chemistry, and anatomy.

Major Depressive Disorder

A mental health condition characterized by persistent feelings of sadness, loss of interest in activities, and a range of emotional and physical problems.