Paiva Corporation owns 80% of Ackroyd Corporation's outstanding
common stock and Ackroyd owns 80% of the outstanding common stock
of Bailey Corporation. Bailey Corporation owns 10% of the
outstanding common stock of Ackroyd Corporation. The cost of the
investments was equal to book value and there were not fair
value/book value differences for the investments. The separate net
incomes for the three affiliated companies for the year ended
December 31, 2014 (excluding investment income) are as follows:
Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and
Bailey Corporation, $30,000. Use the conventional approach.
10) Bailey's noncontrolling interest share for 2014 is A)
$7,609. B) $8,044. C) $15,652. D) $23,696.