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

question 43

Multiple Choice

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

Paint Corporation owns 82% of Achille Corporation and Achille Corporation owns 80% of Badrack Corporation. For the current year, the separate net incomes (excluding investment income) of Paint, Achille, and Badrack are $120,000, $100,000, and $50,000, respectively. The cost of each investment was equal to the book value of the investment, which was also equal to the fair value.

-Noncontrolling interest share for Badrack is

• A)$9,000.
• B)$10,000.
• C)$20,000.
• D)$40,000.

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Definitions:

Small Molecules

Organic compounds with low molecular weight, often used in pharmacology for their ability to modulate biological processes.

Desmosome Junctions

Cell structures specialized for cell-to-cell adhesion, particularly in tissues subjected to mechanical stress, binding cells together to form a strong layer or sheet.

Tight Junctions

Specialized connections between adjacent cells in animal tissues that create a barrier to prevent leakage of materials through intercellular spaces.

Denatured

The process in which proteins or nucleic acids lose their tertiary structure and function due to external stress or compounds.