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

question 5

Multiple Choice

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

Paiva Corporation owns 80% of Ackroyd Corporation's outstanding common stock and Ackroyd owns 80% of the outstanding common stock of Bailey Corporation. Bailey Corporation owns 10% of the outstanding common stock of Ackroyd Corporation. The cost of the investments was equal to book value and there were not fair value/book value differences for the investments. The separate net incomes for the three affiliated companies for the year ended December 31, 2014 (excluding investment income) are as follows: Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and Bailey Corporation, $30,000. Use the conventional approach.

Symbols used:

-Bailey's noncontrolling interest share for 2014 is

• A)$7,609.
• B)$8,044.
• C)$15,652.
• D)$23,696.

---

Definitions:

Ziosk

A brand of tabletop tablet that allows customers in restaurants to order food, play games, and pay their bill directly from their table without waiter assistance.

Calorie Counts

A measure of the energy contained in food, typically used for dietary planning and food labeling.

ERP

Enterprise Resource Planning, or ERP software, is used by organizations to efficiently manage various day-to-day business activities, ranging from accounting and procurement to project management and manufacturing.

Information Silos

Refers to a situation in which information is isolated within a department or unit within an organization, leading to inefficiencies and lack of synergy between different parts of the organization.