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

question 39

Multiple Choice

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

Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased at book value. The separate net incomes of Pahm, Abussi, and Badock (excluding investment income) for the year are $200,000, $240,000, and $260,000, respectively. There were no fair value/book value differences in the assets and liabilities of Pahm, Abussi and Badock.


-The amount of income for the current year assigned to the noncontrolling shareholders of Badock Corporation is

• A)$100,000.
• B)$104,000.
• C)$120,000.
• D)$140,000.

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Definitions:

Business Proposal

A document offering a specific product or service to a potential client or outlining how one can solve a client's problem.

General Manager

A top executive responsible for overall operations and performance of a business or a specific unit within the organization.

Formal Network

An official, structured system of relationships and channels within an organization or group.

Upward Movement

Progression or advancement towards higher positions, levels, or states, often used in the context of careers or financial growth.