Sink Corporation prepared the following summarized balance sheet on January 1, 20X1: Plumber Company acquires 80 percent of Sink Corporation’s common stock on January 1, 20X1, for $80,000. At that date, the fair value of the common shares held by the noncontrolling interest is $20,000.

Required 

1. The amount reported as noncontrolling interest in the consolidated balance sheet is

a. $20,000

b. $26,000

c. $30,000

d. $50,000 

2. In addition to the common shares, Plumber Company purchases 70 percent of Sink’s preferred shares for $21,000. The amount reported as noncontrolling interest in Plumber’s consolidated balance sheet is

a. $9,000

b. $20,000

c. $29,000

d. $50,000 

3. In addition to the common shares, Plumber Company purchases 70 percent of Sink’s preferred shares for $21,000 on January 1, 20X1. If Plumber’s retained earnings are $150,000 on December 31, 20X0, the consolidated retained earnings reported immediately after the stock purchases are

a. $48,000

b. $150,000

c. $198,000

d. $210,000 

4. In addition to the common shares, Plumber Company purchases 70 percent of Sink’s preferred shares for $21,000 on January 1, 20X1. Plumber has no preferred shares outstanding. The amount of preferred stock reported in the consolidated balance sheet immediately after the stock purchases is

a. $0

b. $9,000

c. $21,000

d. $30,000