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

question 43

Multiple Choice

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

On January 1, 2012, Shrimp Corporation purchased a delivery truck with an expected useful life of five years, and a salvage value of $8,000. On January 1, 2014, Shrimp sold the truck to Pacet Corporation. Pacet assumed the same salvage value and remaining life of three years used by Shrimp. Straight-line depreciation is used by both companies. On January 1, 2014, Shrimp recorded the following journal entry:

-The noncontrolling interest share for 2014 was

• A)$18,000.
• B)$22,000.
• C)$23,000.
• D)$27,000.

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Definitions:

Professional Corporation

A type of corporation for professionals such as lawyers, doctors, and accountants, subject to specific regulatory provisions.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Sole Proprietorship

A business structure where a single individual owns, operates, and is responsible for the business, enjoying all profits and bearing all losses.

Limited Liability Corporation

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.