The Following Information Pertains to Questions

question 50

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.
-Approximately what percentage of the non-controlling interest was due to J's own earnings?

• A)19%
• B)45%
• C)30%
• D)5%

---

Definitions:

Dialkyl Ethers

Organic compounds consisting of an oxygen atom bonded to two alkyl groups, often characterized by their ether functional group, R-O-R'.

IUPAC

International Union of Pure and Applied Chemistry, an organization that sets standards for naming chemical compounds.

Epoxypentan-1-ol

An organic compound featuring a five-carbon chain with an epoxide ring (a three-membered ring consisting of an oxygen atom and two carbon atoms) and a hydroxyl group at the first carbon.

Hydroxyethyl

A functional group or moiety featuring an ethyl backbone attached to a hydroxyl group, often represented as -CH2CH2OH.