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

question 43

Multiple Choice

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

Paint Corporation owns 82% of Achille Corporation and Achille Corporation owns 80% of Badrack Corporation. For the current year, the separate net incomes (excluding investment income) of Paint, Achille, and Badrack are $120,000, $100,000, and $50,000, respectively. The cost of each investment was equal to the book value of the investment, which was also equal to the fair value.

-Noncontrolling interest share for Badrack is

• A)$9,000.
• B)$10,000.
• C)$20,000.
• D)$40,000.

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Definitions:

Organization Design

The process of shaping an organization's structure and roles to align with its strategy, goals, and culture.

Mechanistic Organization

Refers to a highly structured, formal organization with centralized authority and a clear chain of command designed for efficiency and predictability.

Centralization

The concentration of decision-making and authority in a central location or among a small group of people within an organization.

Job Responsibilities

Specific duties, tasks, and roles associated with a particular job that an employee is expected to perform.