Parrot Corporation Acquired a 70% Interest in Swifti Corp

question 18

Multiple Choice

Parrot Corporation acquired a 70% interest in Swifti Corp.on January 1,2010,when Swifti's book values and fair values were equivalent.On January 1,2011,Swifti sold a building with a book value of $60,000 to Parrot for $80,000.The building had a remaining life of five years,no salvage value,and was depreciated by the straight-line method.Swifti reported net income of $200,000 for 2011.What was the noncontrolling interest share for 2011?

• A)$54,000
• B)$55,200
• C)$60,000
• D)$128,800

Recognize the role of productivity in determining wages and employment levels.

Distinguish between different economic terms related to labor demand such as derived demand, marginal product, and MRP.

Comprehend the impact of labor supply and demand on wage determination.

Understand the principle of diminishing returns and its effect on labor productivity and MRP.

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Definitions:

Elasticity Coefficient

A measure that quantifies how a change in one economic variable, such as price, affects the quantity demanded or supplied of another variable.

Perfectly Inelastic

A situation in demand or supply in which the quantity demanded or supplied does not change regardless of changes in price.

Quantity Demanded

The specific amount of a good or service consumers are willing to purchase at a given price.

Price Changes

Variations in the cost of goods and services over time in the market.