Plum IncAcquired 90% of the Capital Stock of Sterling Co

question 19

Multiple Choice

Plum Inc.acquired 90% of the capital stock of Sterling Co.on 1/1/16 at a cost of $540,000.On this date Sterling had equipment (10-year life) carried at $200,000 under market and total equity amounting to $350,000. ​
On 1/1/16 Sterling acquired 5% (10,000 shares) of Plum's outstanding common stock for $3 per share.Internally generated net income was $50,000 for Plum and $40,000 for Sterling.The non-controlling interest in consolidated net income is

• A)​$2,000
• B)​$18,000
• C)​$7,500
• D)​$6,800

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Definitions:

Standard Deviations

An estimator of the dispersion level or variability in a sequence of numbers.

Independent

A term indicating that two variables or events have no association and the occurrence of one does not affect the probability of occurrence of the other.

Standard Deviations

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.

Independent

A characteristic of variables in which the value of one variable does not depend on or influence the value of another variable within the context of statistical analysis or experimental design.