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

question 17

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.


-The amount of income for the current year assigned to the noncontrolling shareholders of Abussi Corporation is

• A)$48,000.
• B)$53,200.
• C)$74,000.
• D)$79,200.

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Definitions:

Sensitization

An increased reaction to a stimulus following repeated exposure, typically in response to something negative or harmful.

Withdrawal Response

A behavior in which an organism avoids or retreats from an unpleasant or threatening stimulus.

Dishabituation

The phenomenon of dishabituation involves the re-emergence or strengthening of a response to a stimulus, after that response had diminished due to repeated exposure to the stimulus, reinvigorated by a change in context.

A State

The initial affective reaction to an environmental stimulus in opponent-process theory.