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

question 17

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 Abussi Corporation is

• A)$48,000.
• B)$53,200.
• C)$74,000.
• D)$79,200.

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Definitions:

Service Failure

A situation where a service does not meet a customer's expectations, leading to dissatisfaction or complaints.

Inseparability of Services

Refers to the concept that services are produced and consumed at the same time, meaning the provider and the customer must be present for the transaction to occur.

Satisfaction Guarantees

A promise made by a company to refund or replace a product if a customer is not satisfied with the purchase, intended to reduce purchase risk and increase customer trust.

Heterogeneity

In marketing, it refers to the variability and diversity in services or products offered to meet the different needs and preferences of consumers.