Horton, Inc., owns 90 percent of Juvyn Corporations voting stock. The purchase price exceeded book value and

Question:

Horton, Inc., owns 90 percent of Juvyn Corporation’s voting stock. The purchase price exceeded book value and fair value by $80,000. Juvyn holds 20 percent of Horton’s voting stock. That purchase price exceeded book value and fair value by $20,000. Any excess price is assigned to copyrights to be amortized over a 20-year period.
During the current year, Horton reported operational income of $160,000 and income from Juvyn of $27,000. At the same time, Juvyn reported operational income of $50,000 and income from Horton of $14,000.
What is the Noncontrolling Interest in Juvyn’s Net Income under the treasury stock approach?
a. $5,000.
b. $5,400.
c. $6,300.
d. $6,400.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...