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:

Linear Model

An approach in statistics that assumes a straight-line relationship between the dependent and one or more independent variables.

Model

A simplified representation, often mathematical, of a process or relationship between variables used to predict or explain real-world phenomena.

Applicable

Relevant or appropriate in a given situation or context.

Television Ownership

The state or fact of owning a television set, often considered in studies related to media consumption habits.