Answer:
applied overhead for February 9,000
Explanation:
[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]
expected overhead 101,988
estimated cost dirve 67,992
overheead rate:
[tex]\frac{101,988}{67,992}= Overhead \:Rate[/tex]
Overhead rate = 1.5
Now, applied overhead:
driver usage x rate
6,000 labor hours x 1.5 per hour = $9,000
DLM preferred stock has a 5.8 percent dividend yield. The stock is currently priced at $36.20 per share. What is the amount of the annual dividend?
-$2.35
-$1.90
-$2.10
-$2.30
-$2.40
Answer:
The correct option is c
Explanation: see the picture attached
Answer:
Annual dividend = $2.10
Explanation:
we know that : dividend yield = Annual dividend/ Current stock price
0.058 = Annual dividend / 36.20
0.058 * 36.20 = Annual dividend
Annual dividend = 2.10
You Save Bank has a unique account. If you deposit $7,250 today, the bank will pay you an annual interest rate of 4 percent for 5 years, 4.6 percent for 4 years, and 5.3 percent for 8 years. How much will you have in your account in 17 years
Answer:
$15960.94 is the amount I will have in my account after 17 years.
Explanation:
Firstly we are given the present value of the investment that we will be saving so it will be $7250. we are further given that this investment will be saved during a period of 17 years at different rates through the 17 years so we are looking for the future value after 17 years therefore we will use the future value investment formula as just only one amount is invested.
The future value formula = [tex]Fv = Pv(1+i)^n[/tex]
where Fv is the future value of the investment after 17 years,
Pv is the invested amount initially $7250
i is the interest rate which here it is 4% for the first 5 years, then 4.6% after for 4 years, thereafter 5.3% for the remaining 8 years so we will.
n is the number of years of the investment as per their given interest rates, substitute these values to the above mentioned formula:
Fv= $7250((1+4%)^5) ((1+4.6%)^4)( (1+5.3%)^8) then compute on a calculator
Fv = $15960.938 then we round off to two decimal places
Fv = $15960.94 which will be the amount that will be saved after 17 years .
Answer:
Explanation:
Answer:
After 17 years the account will be =15960.93
Explanation:
Year 5:
Fv=Pv(1+i)^n
Fv=7250(1+0.04)^5
Fv=8820.73
Year 4:
Fv=Pv(1+i)^n
Fv=8820.73(1+0.046)^4
Fv=10559.20
Year 8:
Fv=Pv(1+i)^n
Fv=10559.20(1+0.053)^8
Fv=15960.93
Duve Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (2,000 units) $ 40,000
Variable expenses 24,000
Contribution margin 16,000
Fixed expenses 11,200
Net operating income $ 4,800
If the selling price increases by $4 per unit and the sales volume decreases by 200 units, the net operating income would be closest to:
A.$7,200
B.$12,800
C.$10,400
D.$11,520
Answer:
Option (c) is correct.
Explanation:
Given that,
Sales (2,000 units) = $ 40,000
Variable expenses = 24,000
Contribution margin = 16,000
Fixed expenses = 11,200
Net operating income = $4,800
Selling price per unit:
= Sales ÷ Number of units
= $ 40,000 ÷ 2,000
= $20
Contribution margin:
= Sales - Variable costs
= [($20 + $4) × (2,000 units - 200 units)] - [(24,000 ÷ 2,000) × 1,800 units]
= $43,200 - $21,600
= $21,600
Net operating income:
= Contribution margin - Fixed expenses
= $21,600 - $11,200
= $10,400
You are preparing for a business trip to Chile, where you will need to interact extensively with local professionals. Therefore, you would like to collect information regarding the local culture, and business practices prior to your departure. A colleague from Latin America recommends you to visit the Centre for Intercultural Learning and read though the country insights for Chile. Prepare a one -page description of the most striking cultural characteristics that may affect business interactions in this country.
Explanation:
I noticed some of the striking cultural features of the Intercultural Learning Center in Chile which could affect commercial interactions.
Meeting and Greeting
A handshake is customary when you meet someone in Chile. Rather of shaking your head, you can see people slapping each other on the right forearm. This is appropriate mark to shake hands with all those present when joining big groups. Once people are presented they begin formally and wait until they are informally invited. Present your surnames to people and Mr. Skip or Miss. Many Hispanic citizens have two parent names, a father's name and a mother's name. Typically just the dad's is included.
Gestures
In Chile, as you communicate, people leave little room among themselves. Don't be surprised because when you speak with the other you speak with either a hand on your back. Don't want to walk aside or feel nervous. Eye contact in Chile is critical because confidence, honesty and curiosity are expressed here. It is immoral in Chile to strike your right hand in your (stretched) left palm, a stretched palm with split fingers is crazy.
Business Meetings and Negotiating
A few weeks before arrival in Chile should be named. Summer holidays are January and February, so consider stopping them. Trust and communication as individuals are key to effective commercial ties. You should also use a first visit to Chile to set up a friendship and show who you are. Then the talk can be directed softly to your visit. Throughout Chilean culture, dignity plays a critical role. Never openly threaten or cause anyone shame. Keep to your word, since you'll be treated as unfaithful otherwise. With a strict and straight-forward way, Chileans negotiate. Ome frontline, still not overweight. Strong sales or intimidation tactics rarely succeeds. Be always willing to negotiate because this illustrates that you respect the partnership more than the financial elements of the arrangement.
To establish a business in a different country, such as Chile, it is necessary to learn about the local culture, so that the interaction with professionals and the Chilean consumer can be integrated and be effective for the company's positioning.
As characteristics of the culture of Chile, the following can be highlighted:
The influence of Spanish colonists and indigenous.The strong patriotism in the country.Tradition in wine production.It is the largest copper producer in the world.The country has a young population, the central region is well urbanized, and the economy is derived from mineral resources, agriculture, livestock and forestry resources.
Therefore, through this information, it is possible to develop a business that is more aligned with the interests of the population and economy of Chile.
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The nature of a firm's cost (fixed or variable) depends on the A. firm's revenues. B. price the firm charges for output. C. time horizon under consideration. D. explicit but not implicit costs.
Option C
The nature of a firm's cost (fixed or variable) depends on the time horizon under consideration.
Explanation:
Fixed costs are autonomous of the characteristic of goods or services offered. Fixed costs (also related to as overhead costs) manage to be time-related costs including wages or periodically rental fees. Fixed costs are simply short term and do shift over time.
The long-run is enough time of all short-run information that are fixed to enhance variable. Fixed cost are hardly fixed about the amount of production for a particular period. variable costs can be changed in real-time to market need for the product.
Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about producing a special order for a custom umbrella called the Ultimate Shade (US). The special-order umbrellas with the Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,800 of the US umbrellas at a price of $26 each. Mohave currently has the excess capacity necessary to accept the offer. The following information is related to the production of the US umbrella: Direct materials $ 11.00 Direct labor 6.00 Variable manufacturing overhead 7.50 Fixed manufacturing overhead 2.50 Total cost $ 27.00 Regular sales price $ 34.00 Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should Mohave accept the special order
Answer:
The incremental profit is $4,200. Mohave should accept this order.
Explanation:
(1) Variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead
Variable cost per unit = $11 + $6 + $7.5 = $24.5
Incremental profit = (Sale price per unit - Variable cost per unit) x Units sold
Incremental profit = ($26 - $24.5) x 2,800 = $4,200
(2) Mohave should accept the special order because it is resulting in a profit for the business. We are also informed that Mohave has the excess capacity necessary to accept the order. Hence, no additional fixed costs are incurred in accepting the order, implying that it is overall a profitable transaction for Mohave which it should accept.
The Corporation should accept the special order because the special order will results to a profit of $4,200 for the business.
What is the Variable cost per unit?= Direct materials + Direct labor + Variable manufacturing overhead
= $11 + $6 + $7.5
= $24.5
What is the Incremental profit?= (Sale price per unit - Variable cost per unit) x Units sold
= ($26 - $24.5) x 2,800
= $4,200
In conclusion, the Corporation should accept the special order because the special order will results to a profit of $4,200 for the business.
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Which of the following is the least likely strategy for a U.S. firm that will be purchasing Swiss francs in the future and desires to avoid exchange rate risk (assume the firm has no offsetting position in francs)?
a. Purchase a call option on francs.
b. Sell a futures contract on francs.
c. Obtain a forward contract to purchase francs forward.
d. All of the above are appropriate strategies for the scenario described.
Answer:B. Sell a futures contract on francs.
Explanation: Futures contracts are contracts that involves the legally agreed purchase or sale of an asset,a commodity or a foreign currency at a given price in a specified period in the future.
Most organisations and Government agencies go into futures contracts especially in situations where foreign exchange is expected to rise in future. THE OBLIGATION OF THE BUYER IS TO ENSURE THAT HE OR SHE BUYS THE ASSET, COMMODITY or CURRENCY WHEN THE FUTURES CONTRACTS EXPIRES.
Alex, who is single, conducts an activity in 2019 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000. Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his deductions.
Answer:
The solution to the given problem is done below.
Explanation:
Alex must report the $18,000 as revenues. All of the property taxes of $3,000 can be deducted. Because the remaining expenses of $16,250 exceed the balance of $15,000 ($18,000 revenues − $3,000 property taxes), the $15,000 is deductible as follows:
Materials and supplies $ 4,500
Utilities 2,000
Advertising 5,000
Insurance 750
Depreciation (because depreciation is sequenced
last, only $2,750 of the $4,000 is eligible) 2,750
Total deductible expenses $15,000
These expenses of $15,000 are classified as miscellaneous itemized deductions and will be subject to the 2%-of-AGI floor. Hence, $1,200 [($42,000 + $18,000) × 2%] of these expenses is disallowed.
Other AGI $42,000
Revenues from hobby $18,000
Less: Expenses
Property taxes (3,000)
Miscellaneous itemized
deduction ($15,000 − $1,200) (13,800)
Less: Personal exemption (4,050)
Taxable income $39,150
Identify the parts of the e-mail message indicated:
To: Ellen Stanford
From: Thomas Gregory
[1] Proposed Agenda for November 6 Meeting
Dear Ms. Stanford,
[2] Please review the following agenda for our next shareholder meeting and recommend any changes.
[3]• Rising stock prices
• Discussion of new investors
• Portfolios and new funding
• Introduction of new vice-president
[4] Please send any changes to the agenda to me by 3:00 p.m., November 3.
Many thanks,
Thomas
Thomas Gregory
Financial Analyst
Office: 854.454.4356
Fax: 435.458.9738
Cell: 834.435.8490
Which part of the e-mail is part [1]?
a) Opening with main idea
b) Explaining in the body
c) Subject line
Which part of the e-mail is part [2]?
a) Opening with main idea
b) Closing with a purpose
c) Explaining in the body
Which part of the e-mail is part [3]?
a) Subject line
b) Explaining in the body
c) Closing with a purpose
Answer:Which part of the e-mail is part [1]?
c) Subject line
Which part of the e-mail is part [2]?
a) Opening with main idea
Which part of the e-mail is part [3]?
b) Explaining in the body
Explanation: Also, part 4 is Closing with a purpose.
Business communications have to be clear and concise, one of the ways to achieve this is to have a simple format that makes it easy for the reader or the recipient to scan quickly.
The important parts of the e-mail above include:
The Subject line: this is the heading of the communication and it comes after the 'to' and 'from' fields.
Main Idea: In the spirit of keeping an e-mail concise, it is important to go straight to the main reason you are sending the e-mail. This should be done in one sentence.
Explaining the body: The writer here explained the body of the e-mail with bullet points. This is useful when you have more than one idea.
Closing with a purpose: if there is any required action from the reader, this is where you put it. It is the paragraph of the call to action such as, if you require the person to call you, or prepare some materials.
One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that societyA.conserve resources for future generations.B.sacrifice consumption goods and services now in order to enjoy more consumption in the future.C.recycle resources so that future generations can produce goods and services with the accumulated capital.D.None of the above is correct.
Answer:
B.sacrifice consumption goods and services now in order to enjoy more consumption in the future.
Explanation: Tradeoff is a term used in Economics to refer to the sacrifice of a particular quality or goods in order to enjoy the benefits of the use of another.
Tradeoffs are applied in Economic decisions especially in a situation where there are two competing needs, it is applied in order to choose the most urgent and necessary while the other can be considered for a later day or period.
Applying tradeoffs in Economic decisions will lead to an increase of one factor or need which will lead to a decrease in another factor or need.
You go to your in-house database, which houses eCompeteUSA's domestic and international sales as well as revenue composition over the past 10 years. You examine this data and apply some statistical analysis in order to help decide where to go next. What should you present at the next meeting to put your investigation on the right path?
Answer:
After further thought, you choose to step back and chip away at characterizing the examination issue. Therefore, The goal of this venture isn't clear. Without the specific meaning of the exploration issue, the examination won't be key and consequently won't fill in as a successful investigation. Henceforth it is imperative to step back, distinguish the targets and restrictions of the investigation and in like manner, choose the examination issue.
A sound allocation system should: be cheap and easy to administer provide incentives for cost control charge in proportion to amount used or benefit received be perceived as equitable by those who are charged be all of the above
A sound tax system should be efficient, understandable, and equitable.
Efficient: A good tax system should raise necessary revenues without burdening the taxpayer excessively. Understandable: It should be easily understandable by the average citizen. Equitable: The tax burden should be distributed fairly, with wealthier individuals paying more.
For the accounts listed below, indicate if the normal balance of the account is a debit or credit. Accounts Normal Balance 1. Service Revenue 2. Rent Expense 3. Accounts Receivable 4. Accounts Payable 5. Retained Earnings 6. Supplies 7. Insurance Expense 8. Dividends 9. Buildings 10. Notes Payable
Answer:
1. Service Revenue - credit
2. Rent Expense - Debit
3. Accounts Receivable - Debit
4. Accounts Payable - credit
5. Retained Earnings - credit
6. Supplies - Debit
7. Insurance - Debit
Expense - Debit
8. Dividends - Debit
9. Buildings - Debit
10. Notes Payable - credit
Explanation:
The balance sheet shows the assets, liabilities and equity. While assets normally have a debit balance, liabilities and equity have credit balances.
The income statements shows the revenue and expenses. While revenue usually has a credit balance, expenses usually have debit balances.
The accounts listed have normal balances that are determined by whether they increase or decrease equity in a business. Assets and expenses have debit balances, while liabilities, equity, and revenue have credit balances.
Explanation:In accounting, accounts have either a normal debit balance or a normal credit balance. Here's how your accounts stack up:
Service Revenue: This has a normal credit balance as earnings increase the equity in the business.Rent Expense: This has a normal debit balance as it is an expense that reduces the equity of the business.Accounts Receivable: This has a normal debit balance as it is an asset account.Accounts Payable: This has a normal credit balance as it is a liability account, showing what the business owes.Retained Earnings: This has a normal credit balance, representing profit that is held within the business.Supplies: This has a normal debit balance as it is an asset account.Insurance Expense: This has a normal debit balance as it is an expense that reduces the equity of the business.Dividends: This has a normal debit balance as it reduces retained earnings when paid out to shareholders.Buildings: This has a normal debit balance as it is an asset account.Notes Payable: This has a normal credit balance as it is a liability account, showing what the business owes.Learn more about Accounting here:https://brainly.com/question/33477032
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Franco Company uses IFRS and owns property, plant, and equipment with a historical cost of $5,000,000. At December 31, 2016, the company reported a valuation reserve of $690,000. At December 31, 2017, the property, plant, and equipment was appraised at $5,325,000. The valuation reserve will show what balance at December 31, 2017?
Answer:
$325,000
Explanation:
Valuation reserve is the amount added to to an asset to absorb for any future decrease in the value of such asset.
Given:
Real cost of property, plant, and equipment = $5,000,000
Appraised later/future cost = $5,325,000
Valuation reserve= later/future Appraisal cost - Real cost
=$5,325,000 - $5,000,000
=$325,000
Which data representation system utilizes both letters and numbers? binary decimal hexadecimal octal
Answer:
The correct answer is letter "C": hexadecimal.
Explanation:
The hexadecimal numeral system is composed of ten digits from 0 to 9 and six letters from the English alphabet from A to F. Letter A is given the 10 value and F values 15. Though, the decimal system composed of numbers from 0 to 9 is the most used in calculations and the binary system (composed by 0 and 1) for programming.
Answer:
C
Explanation:
One of Stine Company’s activity cost pools is machine setups, with estimated overhead of $300000. Stine produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?
Answer:
$120,000
Explanation:
In activity based costing, cost is allocated to each unit/department based on activities. In other words, the more the level of activities a unit/department is involved in, the more the cost that will be allocated to that unit and vice versa.
Given that Stine produces sparklers (400 setups) and lighters (600 setups), machine setup cost pool should be assigned to sparklers will be
= (400/(400 + 600)) × $300000
= $120,000
The machine setup cost pool assigned to sparklers at Stine Company is $120,000. This is calculated by determining the cost per setup ($300) and multiplying it by the number of setups for sparklers (400).
To calculate how much of the machine setup cost pool should be assigned to sparklers at Stine Company, we first need to determine the total number of setups for all products.
The total number of setups is the sum of setups for sparklers and lighters which is 400 setups for sparklers and 600 setups for lighters, totaling 1000 setups.
With the estimated overhead for machine setups being $300,000, we can calculate the cost per setup by dividing the total overhead by the total number of setups: $300,000 / 1000 setups = $300 per setup.
Since sparklers require 400 setups, we multiply the number of setups for sparklers by the cost per setup: 400 setups * $300 per setup = $120,000.
Therefore, the cost pool amount assigned to sparklers would be $120,000.
During the first week of January, an employee works 45 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $20 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $92 in federal income taxes withheld. What is the amount of this employee’s gross pay for the first week of January?
Answer:
$950
Explanation:
Gross pay refers to the total income of an employee before taxes and deductions are removed.
The employee gross pay for the first week of January is calculated as follows:
Regular income = $20 × 40 hours = 800
Overtime income = ($20 × 150%) × (45 - 40 hours)
= $30 × 5 hours = $150
Gross pay = $800 + $150 = $950
NOTE
The following is not stated in the question but just meant to teach you how to calculate the net pay from the question in case you are later asked to calculate it.
Net pay refers to the total income of an employee after taxes and deductions are removed. It can be calculated as follows:
FICA Social Security = 6.2% × $950 = $58.90
Note that 6.2% of the remaining amount of $127,450 (i.e. $128,400 - $959 = $127,450) will still be deducted in the subsequent employee's income to account for the total FICA Social Security deductible.
FICA Medicare = 1.45% × $950 = $13.78
Federal income tax withheld = $92
Total deduction = $58.90 + $13.78 + $92 = $164.68
Note: As stated in the question, the employee's wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. This implies that her wages are not subject to FUTA and the SUTA tax. That is why they are not included in the calculation of the total deduction.
Net Pay = Gross pay - total deduction = $950 - $164.68 = $785.32.
Answer:
Gross Wages = $950
Explanation:
The question is to determine the employee's gross pay for the first week of January as follows:
Description Amount
Regular wages (Regular hours 40 x $20) $800
Overtime wages $150
(Total hours - regular hours) x rate per hour
x pay rate
( 45-40) x $20 x 150%
Gross Wages $950
However, not that if you are to calculate the net wages, social security which is Gross x 6.2%, Medicare which is Gross x 1.45% and Federal Income tax which is $92 withheld will be subtracted from the gross pay or wages.
On January 1, 2014, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $312,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was $208,000 and Rockne’s assets and liabilities had a collective net fair value of $520,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $150,000 in 2015. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $210,000 in 2014 and $310,000 in 2015. Approximately 35 percent of the inventory purchased during any one year is not used until the following year.
a. What is the noncontrolling interest’s share of Rockne’s 2015 income?
b. Prepare Doone’s 2015 consolidation entries required by the intra-entity inventory transfers. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Explanation:
Markup is given at 25%
⇒Conversion to gross profit rate = 0.25/1.25 = 20%
Noncontrolling interest’s share
Reported income in 2015 150,000
Add: 2014 intra company gross profit realized in 2015 14,700
[210,000*0.35* 0.20]
Less: Deferred intra company gross profit for 2015 (21,700)
[310,000*0.35*0.20]
2015 realized income 143,000
Outside ownership percentage 40%
Noncontrolling interest’s share 57,200
Consolidation entries
Dr Retained earnings 14,700
Cr Cost of Goods Sold 14,700
Dr Sales 310,000
Cr Cost of Goods Sold 310,000
Dr Cost of Goods sold 21,700
Cr Inventory 21,700
If the price of eggs differs by .30 from one month to the next, by how much would you expect the price of milk to differ? Round the answer to two decimal places.
Answer:
0.08
Explanation:
Regression equation:
y'=-0.2519 x+3.1163
slope coefficient=-0.2519
For each unit of increase in x,there will be on average decrease of 0.2519 in y.
So,if price of eggs(x) differs by 0.30,then there will be change in price of milk of =0.30*0.2519=0.0756
To two decimal places
=0.08
If the the price of eggs differs by 0.30 from one month to the next, then the price of milk will differ by 0.08.
From the information given, the regression equation will be:
y = 0.2519x + 3.1163
where,
Slope coefficient = 0.2519
x = Egg difference
Then, we'll put the value of x into the equation which will be:
y = 0.2519x + 3.1163
From the equation, we are concerned with y = 0.2519x since we are looking for the variables.
= 0.2519(0.30)
= 0.0756
= 0.08 approximately
In conclusion, this means that when the price of eggs differs by 0.30, then the price of milk will differ by 0.08.
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The sales volume variance is______________.a. further divided into separate sales quantity and sales mix variances
b. further divided into separate revenue and quantity variances
c. not further divided
d. further divided into separate flexible budget and sales volume variances
e. further divided into separate variable and fixed variances
Answer:
The correct answer is letter "A": further divided into separate sales quantity and sales mix variances.
Explanation:
The sales volume variance represents the change inf the profit of a company as a result of the changes in the sales volume per unit. It is calculated by subtracting the budgeted sales volume from the actual sales volume and multiplying the result by the budgeted price per unit of the product.
Sales volume variance can be split in sales mix variance and sales quantity variance which are used to evaluate the performance of the marketing department. The sales mix variance represents the performance of the department selling profitable products while the sales quantity variance shows the performance of the marketing department in terms of overall sales volume.
On January 1, 2018, Chamberlain Corporation pays $550,000 for an 80% ownership in Neville. Annual excess fair-value amortization of $25,000 results from the acquisition. For the year ended December 31, 2019, Chamberlain reports net income of $340,000 and Neville reports $175,000. The parent figures contain no income from the subsidiary.
What is the consolidated net income attributable to the non-controlling interest?
Answer:
The question is missing the options, which are contained in the attached question.
The consolidated net income attributable to the non-controlling interest i $30,000.00 with option D as the correct answer as found in the attached
Explanation:
Neville's net income for the year $175,000.00
less annual excess fair value amortization ($25,000.00)
Net income after excess fair amortization $150,000.00
Chamberlain's share of net income
80%*$150,000.00 ($120,000.00)
Non-controlling interest share of net income $30,000.00
Note that the non-controlling interest is a balancing figure.
Chamberlain consolidated income can be computed thus:
Chamberlain 100% net income $380,000.00
Plus share of Neville's net income $120,000.00
Consolidated net income $500000.00