The Following Information Pertains to Questions

question 28

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 G's own earnings?

• A)19%
• B)45%
• C)30%
• D)5%

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Definitions:

Y

Often used to represent a dependent variable in mathematical equations and models.

Random Variables

Variables whose possible values are numerical outcomes of a random phenomenon.

E(X)

The expected value of the random variable X, representing the mean or average value that X takes on.

E(Y)

The expected value of the random variable Y, representing the mean or average outcome of a set of possible values weighted by their probabilities.