1. Faith Company aequired 100% of Installed Components by issuing 200,000 shares of its 52 par value stoef The market value of the stoek is $20 per share. Faith also paid $20,000 in comsoling fees related to 1 . aequisition. Faith's journal entry to record the acguisition would include: credit to additional paid-in-capital, $3,600,000 redit to common stock, $4,000,000 redit to cash, $4,020,000 debit to Equity Investment, $4,020,000 .. An investor who owns 30% of the common stoek of an investee is most likely to exereise significant iufluen reguiring use of the equity method when: a. The investor and investee sign an agreement under which the investor surrenders siguificant fightes b. The investor tries and fails to obtain representation on the investees board of directors c. The investor tries and fails to obtain financial information from the investee d. The second largest investor owns only 1% of the investee's outstanding stock 3. Angelo uses the equity method to account for its investment in Fischer on January 1. On the da acguisition, Fischer's land and buildings were undervalued on its balanee sheet. During the year followian acguisition, how do these excesses of fair values over book values affect Angelo's Equity Income from Fin a. Building, Decrease; Land, No Effect b. Building, Decrease; Land, Decrease c. Building, Increase; Land, Increase d. Building, Increase; Land, No Effect 4. Shannon Company had common stock of $160,000 and retained earnings of $234,000. Gas, Ine had en stock of $350,000 and retained earnings of $376,000. On January 1, 2021, Gus issued 35,000 shares of en stock with a $1 par value and a $15 fair value for all of Shannon Company's outstanding common Immediately after the combination, what were the consolidated net assets? a. 8919,000 b. 81,251,000 c, $1,155,000 d. &884,000 5. If a 30% acquisition is made at a price above book value due to an undervalued patent and the inve signifieant influence over he investee, what will be the relationship between the Equity Investment aceo the investee's stockholders' equity