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

question 5

Multiple Choice

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

Pew Corporation acquired 80% ownership of Sordid Incorporated, at a time when Pew's investment cost was equal to 80% of Sordid's book value. At the time of acquisition, the book values and fair values of Sordid's assets and liabilities were equal. Pew uses the equity method. During 2014, Pew sold goods to Sordid for $160,000 making a gross profit percentage of 20%. Half of these goods remained unsold in Sordid's inventory at the end of the year. Income statement information for Pew and Sordid for 2014 were as follows:


-The 2014 consolidated income statement showed noncontrolling interest share of

• A)$3,200.
• B)$6,400.
• C)$8,800.
• D)$12,000.

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Definitions:

Center Line

A reference line that runs down the center of an object or space, commonly used in design and engineering to mark symmetry or alignment.

Aponeurosis

Extension of connective tissue beyond a muscle in round or flattened tendons; a means of insertion or origin of a flat muscle.

Fascia

A band or sheet of connective tissue, primarily collagen, beneath the skin that attaches, stabilizes, encloses, and separates muscles and other internal organs.

Tendon

A durable, pliable strip of connective tissue that links muscles with bones.