Hambly Corp

question 17

Essay

Hambly Corp. owned 80% of the voting common stock of Stroban Co. During 2011, Stroban sold a parcel of land to Hambly. The land had a book value of $82,000 and was sold to Hambly for $145,000. Stroban's reported net income for 2011 was $119,000.
Required:
What was the non-controlling interest's share of Stroban Co.'s net income?

Understand and apply the concept of departmental overhead rates.

Comprehend and calculate activity-based costing.

Calculate the company's plantwide overhead rate.

Determine the total product cost and unit cost for specific product lines.

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Definitions:

Supply Curve

A graph that shows the relationship between the price of a good and the quantity supplied.

Excise Tax

A tax on the sale or use of specific products or transactions, often included in the price of the product.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell at that price.

Perfectly Inelastic

A scenario in which the quantity demanded or supplied does not change in response to a change in price.