If Smith's Net Income Is $100,000 in the Year Following

Multiple Choice

If Smith's net income is $100,000 in the year following the acquisition,

A) the portion allocated to the common stock (residual amount) is $92,800.
B) $10,800 preferred stock dividend will be subtracted from net income attributed to common stock in arriving at noncontrolling interest in subsidiary income.
C) the noncontrolling interest balance will be $27,200.
D) the preferred stock dividend will be ignored in noncontrolling interest in subsidiary net income because Nichols owns the noncontrolling interest of preferred stock.
E) the noncontrolling interest in subsidiary net income is $30,800.