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

question 14

Multiple Choice

Use the following information to answer the question(s) below..
Pelga Company routinely receives goods from its 80%-owned subsidiary,Swede Corporation.In 2014,Swede sold merchandise that cost $80,000 to Pelga for $100,000.Half of this merchandise remained in Pelga's December 31,2014 inventory.This inventory was sold in 2015.During 2015,Swede sold merchandise that cost $160,000 to Pelga for $200,000.$62,500 of the 2015 merchandise inventory remained in Pelga's December 31,2015 inventory.Selected income statement information for the two affiliates for the year 2015 was as follows:
-Shalles Corporation,a 80%-owned subsidiary of Pani Corporation,sold inventory items to its parent at a $48,000 profit in 2014.Pani resold one-third of this inventory to outside entities.Shalles reported net income of $200,000 for 2014.Noncontrolling interest share of consolidated net income that will appear in the income statement for 2014 is

• A)$30,400.
• B)$32,000.
• C)$33,600.
• D)$40,000.

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Definitions:

Participant Observation Research

A qualitative research method in which the researcher immerses themselves in the community or group being studied, observing and participating in activities to gather data.

Historical Research

The study and analysis of past events and their impact on the present and future through the examination of historical records and artifacts.

Role-taking

The process of assuming the perspective of another person, to understand their thoughts, feelings, and behaviors, facilitating empathy and social interaction.

Socialization

The process through which people learn the expectations of society.