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

question 5

Multiple Choice

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

Pew Corporation acquired 80% ownership of Sordid Incorporated, at a time when Pew's investment cost was equal to 80% of Sordid's book value. At the time of acquisition, the book values and fair values of Sordid's assets and liabilities were equal. Pew uses the equity method. During 2014, Pew sold goods to Sordid for $160,000 making a gross profit percentage of 20%. Half of these goods remained unsold in Sordid's inventory at the end of the year. Income statement information for Pew and Sordid for 2014 were as follows:


-The 2014 consolidated income statement showed noncontrolling interest share of

• A)$3,200.
• B)$6,400.
• C)$8,800.
• D)$12,000.

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Definitions:

Safety-Coated

refers to items that have been covered with a material to reduce or eliminate the risk of harm or injury.

Extra-Strength

Referring to a product or medication designed with a higher potency or effectiveness compared to the regular strength.

Brand Extension

A strategy where a company uses an existing brand name to launch a product in a different category, leveraging the brand's equity to enter new markets.

New Market Segment

Identifying and targeting a previously unrecognized or newly created portion of the market characterized by distinct needs, preferences, or demographic profiles.