The Following Information Pertains to Questions

question 44

Multiple Choice

The following information pertains to questions
Find Corp.is a joint venture in which Seek Inc.has a 20% interest.Seek uses the equity method to account for its investment but has yet to make any journal entries for 2010.The financial statements of both companies are shown below on December 31,2010. During 2010,Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50% on these sales.At the end of 2010,Find's inventory contained $30,000 worth of merchandise purchased from Seek.Find also owed $50,000 to find at the end of 2010.
Seek shall use the proportionate consolidation method (current Canadian GAAP) to report its investment in Find Corp.for 2010.Both companies are subject to 40% tax rate.
-What is the amount of non-controlling interest that would appear on Seek's December 31,2010 Consolidated Balance Sheet?

• A)$144,000
• B)$136,000
• C)$180,000
• D)Nil.

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Definitions:

Noncontroversial

Lacking in controversy, dispute, or disagreement; widely acceptable or agreed upon.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Wooden Toy Factory

A manufacturing facility dedicated to the production of toys made from wood, often celebrated for their durability and environmentally friendly materials.