Gibson Corp

question 105

Multiple Choice

Gibson Corp.owned a 90% interest in Sparis Co.Sparis frequently made sales of inventory to Gibson.The sales,which include a markup over cost of 25%,were $420,000 in 2009 and $500,000 in 2010.At the end of each year,Gibson still owned 30% of the goods.Net income for Sparis was $912,000 during 2010.What was the noncontrolling interest's share of Sparis' net income for 2010?

• A)$85,680.
• B)$90,600.
• C)$90,720.
• D)$91,680.
• E)$91,800.

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Definitions:

Paranoid

Characterized by, or suffering from, the mental condition of paranoia, which involves pervasive distrust and suspicion of others without sufficient basis.

Mute Immobility

A state in which an individual is unable to move or speak, often as a response to extreme stress or trauma.

Excited Motor Activity

Refers to heightened physical activity that can be due to various neurological or psychological conditions, often characterized by restlessness or rapid movements.

Catatonic Schizophrenic

A subtype of schizophrenia characterized by severe disturbances in movement, including rigidity, posturing, and mutism.