Bauerly Co

question 2

Multiple Choice

Bauerly Co. owned 70% of the voting common stock of Devin Co. During 2010, Devin made frequent sales of inventory to Bauerly. There were unrealized gains of $40,000 in the beginning inventory, and $25,000 at the end of the year. Devin reported net income of $137,000 for 2010. Bauerly decided to use the equity method to account for the investment. What is the noncontrolling interest's share of Devin's net income for 2010?

• A) $41,100.
• B) $33,600.
• C) $21,600.
• D) $45,600.
• E) $36,600.

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Definitions:

Sales And Expense

Refers to the process of selling goods or services and the costs incurred during this process.

Compact Disc

A portable, digital optical disc storage format used to store and play back audio recordings, as well as other types of data.

Marketing Objectives

Specific goals a company aims to achieve through its marketing strategies, such as increasing brand awareness or market share.

Marketing Strategy

A comprehensive plan crafted to meet the marketing goals of an organization by effectively reaching and converting the target audience.