Bauerly Co

question 109

Multiple Choice

Bauerly Co. owned 70% of the voting common stock of Devin Co. During 2012, Devin made frequent sales of inventory to Bauerly. There were unrealized gains of $40,000 in the beginning inventory and $25,000 of unrealized gains at the end of the year. Devin reported net income of $137,000 for 2012. Bauerly decided to use the equity method to account for the investment. What is the non-controlling interest's share of Devin's net income for 2012?

• A) $41,100.
• B) $33,600.
• C) $21,600.
• D) $45,600.
• E) $36,600.

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Definitions:

External Goals

Objectives that focus on outcomes beyond an individual's personal desires, often involving others or societal norms.

Relationship

A connection, association, or involvement between people or entities.

Integration

The process of combining parts or elements to form a whole, especially in the context of bringing together diverse groups within a society.

Managing Conflicts

The process of identifying and handling conflicts in a sensible, fair, and efficient manner.