Pepe, Incorporated Acquired 60% of Devin Company on January 1

question 105

Multiple Choice

Pepe, Incorporated acquired 60% of Devin Company on January 1, 2012. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years. Devin reported net income of $300,000 and $325,000 for 2012 and 2013, respectively. Pepe uses the equity method to account for its investment in Devin.
Compute the non-controlling interest in the net income of Devin for 2012.

• A) $116,400.
• B) $120,400.
• C) $120,000.
• D) $123,200.
• E) $112,000.

---

Definitions:

Social Position

An individual's or group's status and role in society, determined by various factors such as occupation, class, gender, and ethnicity.

Double Shift

Refers to the phenomenon where individuals, especially women, work a paid job and then perform unpaid domestic work at home.

Soccer Practice

The scheduled training and preparation session for the sport of soccer, involving drills, exercises, and strategy discussion.

Cleans The House

A phrase indicating the act of tidying, organizing, and removing dirt from the interior of a house to maintain cleanliness and order.