On January 1, 2018, Race Corp

question 7

Multiple Choice

On January 1, 2018, Race Corp.acquired 80% of the voting common stock of Gallow Inc.During the year, Race sold to Gallow for $450,000 goods that cost $330,000.At year-end, Gallow owned 15% of the goods transferred.Gallow reported net income of $204,000, and Race's net income was $806,000.Race decided to use the equity method to account for this investment.Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest?

• A) $ 3,600.
• B) $22,800.
• C) $30,900.
• D) $32,900.
• E) $40,800.

---

Definitions:

Executor

An individual appointed in a will to administer the estate of the deceased, ensuring that their wishes are carried out.

Personal Debt

Money that is owed by an individual, as opposed to debts owed by corporations or governments.

Homecoming Parade Float

A decorated platform, either built on a vehicle like a truck or towed behind one, designed for display in the processional of a homecoming parade, often representing specific themes or celebrating certain achievements.

Breach of Contract

The inability to fulfill obligations as outlined in an agreement without a valid legal justification.