Fox Owns 60% of the Outstanding Common Shares of Sox

question 29

Multiple Choice

Fox owns 60% of the outstanding common shares of Sox and uses the cost method to account for its investment.On January 1,20X4,Fox sold a machine to Sox for $300,000.The equipment had a net book value of $150,000 and a remaining useful life of 5 years at the time of the intercompany sale.Both companies record a full year of amortization expense in the year of purchase and no amortization in the year of sale.The net book value of the equipment on the separate-entity financial statements of Fox and Sox at December 31,20X6 were $1,000,000 and $600,000,respectively.Ignoring income taxes,what is the non-controlling interest's share of the consolidation adjustment(s) on the income statement for the year ended December 31,20X6?

• A)$0
• B)$12,000
• C)$24,000
• D)$36,000

Identify reputable sources for evidence-based practice and health information.

Utilize healthcare databases effectively for literature searches and evidence retrieval.

Maintain the security and confidentiality of patient health information in electronic health records.

Apply informatics concepts to improve patient care safety and reduce medication errors.

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Definitions:

Like Terms

Algebraic terms that have the same variable parts and powers.

Collect

Refers to gathering or bringing things together from multiple sources.

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power, which can be combined or simplified.

Operation Indicated

The process of performing the mathematical operation (such as addition, subtraction, multiplication, or division) as specified by the given problem.