Norek Corp

question 84

Multiple Choice

Norek Corp. owned 70% of the voting common stock of Thelma Co. On January 2, 2012, Thelma sold a parcel of land to Norek. The land had a book value of $32,000 and was sold to Norek for $45,000. Thelma's reported net income for 2012 was $119,000. What is the non-controlling interest's share of Thelma's net income?

• A) $35,700.
• B) $31,800.
• C) $39,600.
• D) $22,200.
• E) $26,100.

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, intended to be tested through experimentation or observation.

Scientific Theory

A well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experimentation.

Testable

Describing a hypothesis or theory that can be examined through experimentation or observation to determine its validity.

Well Established

Something that is firmly grounded, widely recognized, and reputable in its field or area.