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

question 20

Multiple Choice

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

Bower Corporation purchased a 70% interest in Stage Corporation on June 1, 2013 at a purchase price of $350,000. On June 1, 2013, the book values of Stage's assets and liabilities were equal to fair values. On June 1, 2013, Stage's stockholders' equity consisted of $290,000 of Common Stock and $210,000 of Retained Earnings. All cost-book differentials were attributed to goodwill.

During 2013, Stage earned $120,000 of net income, earned uniformly throughout the year and paid $6,000 of dividends on March 1 and another $6,000 on September 1.

-Noncontrolling interest share for 2013 is

• A)$21,000.
• B)$32,400.
• C)$36,000.
• D)$50,000.

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Definitions:

Selective Attention

The process by which individuals focus on particular information while ignoring other stimuli, based on relevance or interest.

Selective Attention

The cognitive process of focusing on certain stimuli in the environment while ignoring others, influenced by interest, background, and objectives.

Incoming Information

Data or knowledge received by an individual or organization that needs to be processed, analyzed, or acted upon.

Selective Attention

The cognitive process of focusing on specific stimuli while ignoring others, allowing for more efficient information processing.