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

question 36

Multiple Choice

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

Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.

-The amount of noncontrolling interest share for the current year is

• A)$69,000.
• B)$85,000.
• C)$95,000.
• D)$99,000.

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Definitions:

Properly Calibrated

Refers to the accurate adjustment of instruments, equipment, or devices to ensure their measurements meet the required standards.

Electronic Control

Systems or devices that use electrical signals to regulate or manage other electronic systems.

Significant Level

This term likely refers to significance level; thus it is the threshold at which the p-value of test results must fall below to reject the null hypothesis, indicating statistical significance.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.