REFERENCE: Ref.07_10 Alpha Corporation Owns 100 Percent of Beta Company,and Beta Owns

question 26

Multiple Choice

REFERENCE: Ref.07_10
Alpha Corporation owns 100 percent of Beta Company,and Beta owns 80 percent of Gamma,Inc. ,all of which are domestic corporations.Information for the three companies for the year ending December 31,2009 follows:

-What is the total noncontrolling interest in the subsidiaries' income for 2009?

• A)$0.
• B)$9,600.
• C)$10,000.
• D)$19,200.
• E)$20,000.

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Definitions:

Voting Stock

Shares that give the shareholder voting rights in a company's decisions.

Net Income

A company's final profit after deducting all expenses and taxes from its total revenue.

Net Sales

Represents the revenues from goods and services sold after deducting returns, allowances for damaged or missing goods, and any discounts.

Average Total Assets

The mean value of all assets owned by a company over a specific time period, used in financial analysis.