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

question 27

Multiple Choice

Use the following information to answer the question(s) below.
Bower Corporation purchased a 70% interest in Stage Corporation on June 1,2010 at a purchase price of $350,000.On June 1,2010,the book values of Stage's assets and liabilities were equal to fair values.On June 1,2010,Stage's stockholders' equity consisted of $290,000 of Common Stock and $210,000 of Retained Earnings.All cost-book differentials were attributed to goodwill.
During 2010,Stage earned $120,000 of net income,earned uniformly throughout the year and paid $6,000 of dividends on March 1 and another $6,000 on September 1.
-Noncontrolling interest share for 2010 is

• A)$21,000.
• B)$32,400.
• C)$36,000.
• D)$50,000.

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Definitions:

Checking Account

A checking account is a bank account that allows for easy access to funds through checks, debit cards, and electronic transfers, used primarily for daily transactions.

ATM Withdrawal

The act of taking out cash from one's bank account through an Automated Teller Machine.

Usage Fee

Charges incurred for using a particular service or facility, often assessed on a periodic basis.

Compound Interest

Interest that is earned on the money deposited into an account plus previous interest.