Alpha Corporation Owns 100 Percent of Beta Company, and Beta

question 86

Multiple Choice

Alpha Corporation owns 100 percent of Beta Company, and Beta owns 80 percent of Gamma, Inc. all of which are domestic corporations. Information for the three companies for the year ending December 31, 2013 follows: What is the total non-controlling interest in the subsidiaries' income for 2013?

• A) $0.
• B) $9,600.
• C) $10,000.
• D) $19,200.
• E) $20,000.

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Definitions:

Public Corporations

Entities that are owned by public shareholders. These corporations have shares that are listed and traded on public stock exchanges.

International Financial Reporting Standards

A set of global accounting standards developed by the International Accounting Standards Board (IASB) that outlines how financial transactions and other events should be reported in financial statements.

Private Corporations

Businesses owned by non-governmental organizations or a relatively small number of shareholders or company members which do not offer or trade their company stock to the general public on the stock market.

Single Owner

Refers to a business structure where a single individual owns, manages, and is responsible for all aspects of the business, often known as sole proprietorship.