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

question 14

Multiple Choice

Use the following information to answer the question(s) below..
Pelga Company routinely receives goods from its 80%-owned subsidiary,Swede Corporation.In 2014,Swede sold merchandise that cost $80,000 to Pelga for $100,000.Half of this merchandise remained in Pelga's December 31,2014 inventory.This inventory was sold in 2015.During 2015,Swede sold merchandise that cost $160,000 to Pelga for $200,000.$62,500 of the 2015 merchandise inventory remained in Pelga's December 31,2015 inventory.Selected income statement information for the two affiliates for the year 2015 was as follows:
-Shalles Corporation,a 80%-owned subsidiary of Pani Corporation,sold inventory items to its parent at a $48,000 profit in 2014.Pani resold one-third of this inventory to outside entities.Shalles reported net income of $200,000 for 2014.Noncontrolling interest share of consolidated net income that will appear in the income statement for 2014 is

• A)$30,400.
• B)$32,000.
• C)$33,600.
• D)$40,000.

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Definitions:

Initiating Structure

Leadership behavior that emphasizes task organization, assignment, and completion, focusing on defining role responsibilities.

Empowerment

Increasing the degree of autonomy and self-determination in individuals or communities to enable them to represent their interests in a responsible and self-determined way.

Consideration

The act of thoughtful or careful reflection before making decisions or judgments.

Undermine Organizational Goals

Actions or behaviors that weaken or sabotage the objectives set by an organization.