Able Company Owns an 80% Interest in Barns Company and a 20

question 33

Short Answer

Able Company owns an 80% interest in Barns Company and a 20% interest in Carns Company.Barns owns a 40% interest in Carns Company.The reported income of Carns is $20,000 for 2019.Which of the following shows how it will be distributed? ?
$\begin{array}{ccc}&\text { Barns} & \text { Carns }\\\text { Controlling } & \text { Non- } & \text { Non- } \\\text { Interest } & \text { Controlling } & \text { Controlling }\end{array}$
A) $\begin{array}{lrr} \$ 10,400 &&&& \$ 1,600 &&& \$ 8,000 \\\end{array}$
B) $\begin{array}{lrr} \$ 2,000 &&&& \$ 8,000 &&&& \$ 8,000 \\\end{array}$
C) $\begin{array}{lrr} \$ 12,000 &&& \$ 0 &&&&&& \$ 8,000 \\\end{array}$
D) $\begin{array}{lrr}\$ 10,400 &&& \$ 9,600 &&&& \$ 0\end{array}$

• A)\(\begin{array}{lrr}
• \$ 10,400 &&&& \$ 1,600 &&& \$ 8,000 \\\end{array}\)
• B)\(\begin{array}{lrr} \$ 2,000 &&&& \$ 8,000 &&&& \$ 8,000 \\\end{array}\)
• C)\(\begin{array}{lrr} \$ 12,000 &&& \$ 0 &&&&&& \$ 8,000 \\\end{array}\)
• D)\(\begin{array}{lrr}\$ 10,400 &&& \$ 9,600 &&&& \$ 0
• \end{array}\)

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Definitions:

Invention

The development of a new product or the first implementation of a process.

Government Protection

Measures undertaken by governments to safeguard industries, workers, consumers, or the environment from harm or unfair practices.

Technological Advance

The development and application of new technologies and processes that improve efficiency, productivity, or bring new products to the market.

Product Demand

The desire or need for a specific product or service combined with the capacity to purchase it.