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

question 37

Multiple Choice

Use the following information to answer the question(s) below.
On January 1,2010,Shrimp Corporation purchased a delivery truck with an expected useful life of five years,and a salvage value of $8,000.On January 1,2012,Shrimp sold the truck to Pacet Corporation.Pacet assumed the same salvage value and remaining life of three years used by Shrimp.Straight-line depreciation is used by both companies.On January 1,2012,Shrimp recorded the following journal entry:
Pacet holds 60% of Shrimp.Shrimp reported net income of $55,000 in 2012 and Pacet's separate net income (excludes interest in Shrimp) for 2012 was $98,000.
-The noncontrolling interest share for 2012 was

• A)$18,000.
• B)$22,000.
• C)$23,000.
• D)$27,000.

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Definitions:

Lawful Strike

A work stoppage by employees that is legal under local or national labor law.

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms and conditions of employment.

Picket Lines

A form of protest or demonstration by workers, often during a strike, where they line up outside their place of employment to dissuade others from entering.

Duty of Fair Representation

The legal obligation of a union to represent all members fairly, without bias or discrimination.