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

question 9

Multiple Choice

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

Paiva Corporation owns 80% of Ackroyd Corporation's outstanding common stock and Ackroyd owns 80% of the outstanding common stock of Bailey Corporation. Bailey Corporation owns 10% of the outstanding common stock of Ackroyd Corporation. The cost of the investments was equal to book value and there were not fair value/book value differences for the investments. The separate net incomes for the three affiliated companies for the year ended December 31, 2014 (excluding investment income) are as follows: Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and Bailey Corporation, $30,000. Use the conventional approach.

Symbols used:

-Ackroyd's noncontrolling interest share for 2014 is

• A)$7,609.
• B)$8,044.
• C)$15,652.
• D)$23,696.

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Definitions:

Heating by Magma

The process by which surrounding rock and material are heated due to the intrusion or presence of magma, which can lead to metamorphism or melting.

Shearing at Depth

Deformation of rock and soil layers deep within the Earth's crust caused by lateral movement or stress.

Low Pressure

A condition in the atmosphere where the air pressure is lower than the surrounding area, often associated with stormy weather and precipitation.

High Temperature

A condition or state of having a temperature significantly above the norm or average, often associated with specific geographical areas, processes, or reactions.