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

question 12

Multiple Choice

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

Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.

-The controlling interest share of consolidated net income for the current year is

• A)$341,000.
• B)$348,400.
• C)$351,000.
• D)$355,000.

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Definitions:

Obsessive-Compulsive Disorder

A mental health disorder characterized by repetitive, unwanted thoughts (obsessions) and irrational, excessive urges to do certain actions (compulsions).

Panic Disorder

A type of anxiety disorder characterized by sudden and repeated episodes of intense fear accompanied by physical symptoms such as chest pain, heart palpitations, or shortness of breath.

Representativeness Heuristic

A cognitive bias where people judge the probability of an event by how much it resembles a typical case.

Prototypical Disorders

Mental health disorders characterized by a set of typical or standard symptoms that represent a common and recognizable example of the disorder.