REFERENCE: Ref.06_01 on January 1,2009,Riney Co.owned 85% of the Common Stock of Stock

question 43

Multiple Choice

REFERENCE: Ref.06_01
On January 1,2009,Riney Co.owned 85% of the common stock of Garvin Co.On that date,Garvin's stockholders' equity accounts had the following balances: The balance in Riney's Investment in Garvin Co.account was $569,500,and the noncontrolling interest was $100,500.On January 1,2009,Garvin Co.sold 10,000 shares of previously unissued common stock for $15 per share.Riney did not acquire any of these shares.
-What is the balance in Noncontrolling Interest in Garvin Co.after the sale of the 10,000 shares of common stock? (Do not round calculation of new interest. )

• A)$100,500.
• B)$239,167.
• C)$261,833.
• D)$250,500.
• E)$205,000.

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Definitions:

Flat Hierarchy

An organizational structure with few or no levels of middle management between staff and executives, which can encourage more open communication and quicker decision-making.

Formalization

The process of establishing official procedures, rules, and documentation within an organization.

Work Processes

The established methods and procedures used to effectively complete tasks and achieve organizational goals.

Functional Structure

An organizational design that groups employees by their similar specialties, roles, or tasks.