X-Beams Inc

question 12

Multiple Choice

X-Beams Inc.owned 70% of the voting common stock of Kent Corp.During 2009,Kent made several sales of inventory to X-Beams.The total selling price was $180,000 and the cost was $100,000.At the end of the year,20% of the goods were still in X-Beams' inventory.Kent's reported net income was $300,000.What was the noncontrolling interest in Kent's net income?

• A)$90,000.
• B)$85,200.
• C)$54,000.
• D)$94,800.
• E)$86,640.

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Definitions:

Utility Function

A mathematical representation of how a consumer derives satisfaction from consuming goods and services, depending on the quantity consumed.

Budget Constraint

Represents the combinations of goods and services a consumer can purchase given their income and the prices of those goods and services.

Income

The financial return or earnings, including wages, salaries, benefits, and investment returns, received by an individual or household over a period of time.

Nuts

Edible seeds encased in a hard shell, often consumed as a snack or used as an ingredient in various dishes.