Parrot Corporation Acquired a 70% Interest in Swifti Corp

question 18

Multiple Choice

Parrot Corporation acquired a 70% interest in Swifti Corp.on January 1,2010,when Swifti's book values and fair values were equivalent.On January 1,2011,Swifti sold a building with a book value of $60,000 to Parrot for $80,000.The building had a remaining life of five years,no salvage value,and was depreciated by the straight-line method.Swifti reported net income of $200,000 for 2011.What was the noncontrolling interest share for 2011?

• A)$54,000
• B)$55,200
• C)$60,000
• D)$128,800

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Definitions:

Controlled Motivation

A type of motivation that is externally regulated, often through rewards and punishments, rather than stemming from inherent interest or enjoyment.

Controlled Motivation

A type of motivation generated by external pressures or obligations, rather than internal interest or enjoyment in the activity itself.

N-Ach

Abbreviation for "Need for Achievement," which is the drive to excel, achieve in relation to a set of standards, and strive to succeed.

Growth Need

The requirement for personal development, learning new skills, and career advancement.