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

question 7

Multiple Choice

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

On December 31, 2013, Parminter Corporation owns an 80% interest in the common stock of Sanchez Corporation and an 80% interest in Sanchez's preferred stock. On December 31, 2013, Sanchez's stockholders' equity was as follows:
On December 31, 2013, preferred dividends are not in arrears. Sanchez had 2014 net income of $30,000 and only preferred dividends are declared and paid in 2014. There are no book value/fair value differentials associated with Parminter's investments.


-What should be the noncontrolling interest share,preferred in the consolidated financial statements of Parminter for the year ending December 31,2014?

• A)$1,000
• B)$2,000
• C)$4,000
• D)$5,000

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Definitions:

Negative Reinforcement

Withdrawal of an aversive experience, which serves as a rewarding consequence of a behavior. For example, rewarding your dog for sitting on command by removing a restraining muzzle.

TV Privileges

The allowance or permission granted to someone, especially children, to watch television, often used as a reward or incentive.

Compliance

The act of conforming, submitting, or adapting one's behavior to align with the rules, demands, or expectations of others.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.