On January 1,2009,Race Corp

question 19

Multiple Choice

On January 1,2009,Race Corp.acquired 80% of the voting common stock of Gallow Inc.During the year,Race sold to Gallow for $450,000 goods which cost $330,000.Gallow still owned 15% of the goods at year-end.Gallow's reported net income was $204,000,and Race's net income was $806,000.Race decided to use the equity method to account for this investment.What was the noncontrolling interest's share of consolidated net income?

• A)$37,200.
• B)$22,800.
• C)$30,900.
• D)$32,900.
• E)$40,800.

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Definitions:

Ethical Leadership

describes leading by demonstrating ethical behavior, influencing others to behave ethically through actions and decisions.

Zero-Tolerance Policy

A policy that enforces strict punishment for infractions of a stated rule, with the intention of eliminating undesirable behaviors.

Ethical Intensity

The degree of importance or impact that an ethical issue has, based on its potential outcomes and the number of people affected.

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Government provided financial benefits given to individuals due to retirement, disability, or death, for the purpose of income support.