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

question 28

Multiple Choice

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

Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased at book value. The separate net incomes of Pahm, Abussi, and Badock (excluding investment income) for the year are $200,000, $240,000, and $260,000, respectively. There were no fair value/book value differences in the assets and liabilities of Pahm, Abussi and Badock.


-Controlling interest share of consolidated net income for the current year is

• A)$504,800.
• B)$516,800.
• C)$545,200.
• D)$557,200.

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Definitions:

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A psychiatric disorder that involves abnormal alterations in cognition, perception, feelings, speech, self-awareness, and conduct.

Free Will

The concept that human beings have the power to make choices that are not determined by natural forces or divine intervention.

Laboratory Studies

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A form of psychotherapy that emphasizes the importance of thinking in how we feel and what we do, aiming to treat mental disorders by changing dysfunctional thought patterns.