REFERENCE: Ref.07_06 Chase Company Owns 80% of Lawrence Company and 40% of 40

question 107

Multiple Choice

REFERENCE: Ref.07_06
Chase Company owns 80% of Lawrence Company and 40% of Ross Company.Lawrence Company also owns 30% of Ross Company.Separate operating incomes for 2009 of Chase,Lawrence,and Ross are $450,000,$300,000,and $250,000,respectively.Each company also retains a $20,000 unrealized gain in their current income figures.Annual amortization expense of $15,000 is assigned to Chase's investment in Lawrence and another $15,000 is assigned to Lawrence's investment in Ross.
-Compute the noncontrolling interest in Ross' net income for 2009.

• A)$92,000.
• B)$77,400.
• C)$75,000.
• D)$64,500.
• E)$69,000.

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Informal Investor

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