If Smith's Net Income Is $100,000 in the Year Following

question 71

Multiple Choice

If Smith's net income is $100,000 in the year following the acquisition,

• A) The portion allocated to the common stock (residual amount) is $92,800.
• B) $10,800 preferred stock dividend will be subtracted from net income attributed to common stock in arriving at noncontrolling interest in consolidated income.
• C) The noncontrolling interest in consolidated net income is $27,200.
• D) The preferred stock dividend will be ignored in noncontrolling interest in consolidated net income because Nichols owns the noncontrolling interest of preferred stock.
• E) The noncontrolling interest in consolidated net income is $30,800.

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Definitions:

GDP

Gross Domestic Product, which is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

GDP

Gross Domestic Product; the total market value of all final goods and services produced within a country in a given period.

Gross Domestic Product

A measure of the economic performance of a country, calculating the total value of all goods and services produced within its borders in a specific period.

Inputs and Outputs

The resources used in the production process (inputs) and the goods or services produced (outputs).