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

question 39

Multiple Choice

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

Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased at book value. The separate net incomes of Pahm, Abussi, and Badock (excluding investment income) for the year are $200,000, $240,000, and $260,000, respectively. There were no fair value/book value differences in the assets and liabilities of Pahm, Abussi and Badock.


-The amount of income for the current year assigned to the noncontrolling shareholders of Badock Corporation is

• A)$100,000.
• B)$104,000.
• C)$120,000.
• D)$140,000.

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Definitions:

Generativity Versus Stagnation

A stage in Erik Erikson's theory of psychosocial development where the challenge is to contribute to the next generation or feel a sense of stagnation.

Independent

Not influenced or controlled by others in matters of opinion, conduct, thinking, or acting; relying on oneself or one's own capabilities, judgment, or resources.

Young Adulthood

A life stage typically ranging from late teens through twenties, often focused on exploring personal relationships, career, and identity.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of human beings, emphasizing stages of identity and crisis throughout the lifespan.