Tamer Limited Is a Subsidiary of Wallen Limited

question 25

Multiple Choice

Tamer Limited is a subsidiary of Wallen Limited. When Wallen acquired its 60% interest, the retained earnings of Tamer Limited were $20 000. At the beginning of the current period, Tamer Limited's retained earnings had increased to $50,000. Tamer earned net income of $10 000 during the current period. The share of the non-controlling interest in the equity of Tamer Limited at the reporting date is:

• A)$24,000
• B)$32,000
• C)$36,000
• D)$48,000

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Definitions:

Scale

Refers to the size or level of operation, especially in terms of the capacity to produce or serve in business and economics.

Increasing Returns

A situation where an increase in the amount of inputs results in a more than proportional increase in the output, demonstrating enhanced efficiency or productivity.

Inputs

The resources used in the production process to create goods or services, including labor, raw materials, and capital.

Scale

The size or level of activity of a company or operation, or the capacity to adjust the size or level of activity.