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

question 12

Multiple Choice

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

Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.

-The controlling interest share of consolidated net income for the current year is

• A)$341,000.
• B)$348,400.
• C)$351,000.
• D)$355,000.

---

Definitions:

Acute Glomerulonephritis

A sudden inflammation of the glomeruli, which are small structures in the kidneys that filter waste from the blood.

Severe Edema

An excessive accumulation of fluid in body tissues and cavities, leading to significant swelling, which can be indicative of serious health issues.

Salt

A mineral composed primarily of sodium chloride (NaCl), used in food for flavoring and preservation, as well as in various industrial processes.