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

question 25

Multiple Choice

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

On December 31, 2013, Parminter Corporation owns an 80% interest in the common stock of Sanchez Corporation and an 80% interest in Sanchez's preferred stock. On December 31, 2013, Sanchez's stockholders' equity was as follows:
On December 31, 2013, preferred dividends are not in arrears. Sanchez had 2014 net income of $30,000 and only preferred dividends are declared and paid in 2014. There are no book value/fair value differentials associated with Parminter's investments.


-What should be the noncontrolling interest share,common in the consolidated financial statements of Parminter for the year ending December 31,2014?

• A)$5,000
• B)$20,000
• C)$25,000
• D)$30,000

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Definitions:

Factor VII

A protein in the blood that plays a crucial role in the clotting process, initiating the extrinsic pathway of blood coagulation.

Prothrombinase

Prothrombinase is an enzyme complex that plays a crucial role in the blood coagulation process by converting prothrombin into thrombin, a key step in forming a blood clot.

Thrombin

A protein in the blood that triggers blood coagulation by transforming fibrinogen into fibrin.

Fibrinogen

A blood plasma protein that's converted into fibrin during blood clot formation to stop bleeding.