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Paris, Inc

question 55

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Paris, Inc. owns 80 percent of the voting stock of Stance, Inc. The excess total fair value over book value was $75,000. Stance holds 10 percent of the voting stock of Paris. The payment for that investment was in excess of book value and fair value by $15,000. Any excess fair value is assigned to trademarks to be amortized over a 10-year period. During the current year, Paris reported operating income of $200,000 and dividend income from Stance of $20,000. At the same time, Stance reported operating income of $40,000 and dividend income from Paris of $5,000.
What will be reported as the non-controlling interest in Stance's net income?

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Definitions:

Random Assignment

is a process used in experimental designs to allocate participants to different groups in a study by chance, minimizing pre-existing differences among those groups.

Pretest-Posttest Nonequivalent Groups Design

A quasi-experimental design involving two groups that are not randomly assigned, with both groups measured both before (pretest) and after (posttest) a treatment or intervention.

Posttest-Only Nonequivalent Groups Design

An experimental design in which different groups are compared only after the treatment or intervention, without a pretest comparison.

Pretreatment Differences

Variations among participants in a study that exist before the intervention or treatment is applied.

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