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

question 3

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.


-Controlling interest share of consolidated net income for Paint Corporation and Subsidiaries is:

• A)$234,800.
• B)$244,800.
• C)$260,000.
• D)$270,000.

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Definitions:

Price

The amount of money required to purchase a good or service.

Elastic

Describing a situation where the quantity demanded or supplied of a product changes significantly in response to a change in price.

Total Revenue

The total amount of money a firm receives by selling goods or services, calculated as the quantity sold multiplied by the price.

Sellers

Individuals or entities that offer goods or services for sale to consumers or other businesses.