The Following Information Pertains to Questions

question 38

Multiple Choice

The following information pertains to questions
The following information pertains to the shareholdings of an affiliated group of companies.The respective ownership interest of each company is outlined below.
A Inc.:
A Inc.owns 75% of J Inc.and 60% of G Inc.
J Inc.:
J Inc.owns 60% of D Inc.and 20% of G Inc.
G Inc.:
G Inc.owns 10% of J Inc.and 80% of Y Inc.
All intercompany investments are accounted for using the equity method.
The Net Incomes for these companies for the year ended December 31,2009 were as follows: Unrealized intercompany profits earned by the various companies for the year ended December 31,2009 are shown below: All companies are subject to a 25% tax rate.
-What is the amount of non-controlling interest that would appear on A Inc.'s Consolidated Income Statement?

• A)$660,000
• B)$396,375
• C)$400,000
• D)Nil.

---

Definitions:

Concessions

Compromises made by one party in a negotiation to reach an agreement or settlement.

Misperceptions

Incorrect understandings or interpretations of something or someone.

Cognitive Biases

Refers to systematic errors in thinking that affect decisions and judgments, often leading to irrational conclusions.

Frames

Frames in negotiations refer to the perspectives or viewpoints through which problems or issues are interpreted and understood by the parties involved.