Zeta Corporation and Its Subsidiary Reported Consolidated Net Income of $320,000

question 17

Multiple Choice

Zeta Corporation and its subsidiary reported consolidated net income of $320,000 for the year ended December 31,2008.Zeta owns 80 percent of the common shares of its subsidiary,acquired at book value.Noncontrolling interest was assigned income of $30,000 in the consolidated income statement for 2008.What is the amount of separate operating income reported by Zeta for the year?

• A)$170,000
• B)$150,000
• C)$120,000
• D)$200,000

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Definitions:

Fixed-Rate

Pertains to loans, mortgages, or other financial products that have an interest rate that remains constant for the entire term of the loan.

Payoff Profile

A graphical representation showing the potential profit and loss of an investment strategy at different prices of the underlying asset at expiration.

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An investment made to reduce the risk of adverse price movements in an asset, usually through derivatives such as options or futures contracts.

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The application of mathematical techniques to solve financial problems, including designing new financial instruments.