(Learning Objective 3: Understanding goodwill and non-controlling interest) Two accounts that arise from consolidation accounting are goodwill and non-controlling interest.

1. What is goodwill, and how does it arise? Which company reports goodwill, the parent or the subsidiary? Where is goodwill reported?

2. What is non-controlling interest, and which company reports it, the parent or the subsidiary? Where is non-controlling interest reported?