What Effect Will the Adjustment for the Realization of the Intercompany

question 41

Multiple Choice

What effect will the adjustment for the realization of the intercompany gain (in the preparation of the consolidated income statement) have on the non-controlling interest in income for 2017?

• A) It will have no effect on the non-controlling interest in income.
• B) It will decrease the non-controlling interest in income by $24,000.
• C) It will increase the non-controlling interest in income by $24,000.
• D)It will increase the non-controlling interest in income by $30,000.

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Definitions:

Just-World Phenomenon

The tendency for people to believe the world is just and that people therefore get what they deserve and deserve what they get.

Ingroup Bias

The tendency to favor our own group.

Stereotyping

A cognitive process where individuals generalize attributes, characteristics, and behaviors to members of a particular group.

Prejudice

A preconceived opinion that is not based on reason or actual experience.