On January 1, 2010, Jones Company Bought 15% of Whitton

question 44

Multiple Choice

On January 1, 2010, Jones Company bought 15% of Whitton Company. Jones paid $150,000 for these shares, an amount that exactly equaled the proportionate book value of Whitton. On January 1, 2011, Whitton acquired 80% ownership of Jones. The following data are available concerning Whitton's acquisition of Jones:
Consideration transferred for 80% interest, January 1, 2011: $800,000
Jones' reported book value, January 1, 2011: 900,000
Excess fair value over book value (assigned to trademarks) is amortized over 20 years.
The initial value method is used by both companies.
The following information is available regarding Jones and Whitton:
-Compute the noncontrolling interest in net income for 2011.

• A) $11,000.
• B) $10,800.
• C) $9,000.
• D) $8,200.
• E) $7,200.

Understand the importance and processes of pretesting and posttesting in advertising copy.

Differentiate between various types of advertising agencies and their services.

Recognize the distinctions between sales promotions tools such as coupons, deals, contests, and sweepstakes.

Outline the steps to develop an effective advertising program.

---

Definitions:

Pedophiles

Adults who are sexually attracted to prepubescent children, a condition classified as a psychiatric disorder.

Non-Right Handedness

The characteristic of using the left hand more proficiently than the right hand for daily activities.

Cortical Deficits

Impairments in the function or structure of the brain's cortex, potentially affecting cognitive, sensory, or motor functions.

Chemical Castration

The administration of medication designed to reduce libido and sexual activity, often used as a treatment for sex offenders.