Parrot Corporation Acquired a 70% Interest in Swifti Corp

question 15

Multiple Choice

Parrot Corporation acquired a 70% interest in Swifti Corp.on January 1,2013,when Swifti's book values and fair values were equivalent.On January 1,2014,Swifti sold a building with a book value of $60,000 to Parrot for $80,000.The building had a remaining life of five years,no salvage value,and was depreciated by the straight-line method.Swifti reported net income of $200,000 for 2014.What was the noncontrolling interest share for 2014?

• A)$54,000
• B)$55,200
• C)$60,000
• D)$128,800

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Definitions:

Exotic Species

Species that are introduced to a new area where they do not naturally occur, often leading to ecological disruptions.

Indicator Species

Organisms used as a sign or measure of the environmental conditions or changes in an ecosystem because of their sensitivity to such conditions.

Endemic Species

Species that are native to a specific geographical area and are not naturally found anywhere else.

Keystone Species

A species crucial for the stability of an ecological community, influencing numerous other organisms within the ecosystem.