1. Goodwill existed in the acquisition of a subsidiary by its parent. One year after the acquisition, it was determined that there was a goodwill impairment loss. Where should the goodwill impairment loss be reported? a. in the subsidiary's income statement as an operating loss b. in the consolidated balance sheet as part of accumulated comprehensive loss c. in the consolidated income statement as an operating loss d. in the consolidated income statement as an extraordinary loss e. in the parent's income statement as an extraordinary loss 2. Company P acquired 80% of Company S's common stock in 2020 . Which of the following accounting methods/concepts is not required for the preparation of the consolidated financial statements of P and S under current U.S. GAAP? a. Full consolidation b. The acquisition method c. Economic unit concept d. (All of these are required.) 3. On 1/2/20, Company P acquired 60% of the outstanding common stock of Company S for $600,000. No control premium was paid. At this time, S 's book value was $360,000 and its identifiable net assets had total fair value of $750,000. At the end of the year, 12/31/20, S's book value was $420,000 and the fair value of its identifiable net assets was $840000. Assume there wasn't impairment loss, how much should be reported as goodwill in the consolidated balance sheet of 12/31/20 ? a. $0 b. $250,000 c. $150,000 d. $160,000 c. (none of these) 4. Plato Ine. acquired 68% of Socrates Company's voting shares for $596,000 on 1/1/20. On this date, the fair value of Socrates' remaining outstanding common shares was \$254,000, and Socrates had a book value of \$680,000. Did Plato pay a control premium in its acquisition of Socrates? a. Yes b. No 5. Company A acquired 80% of Company B's common stock. The balance of P's "Investment in S " and the balance of " NCl in net assets" will always be in a 8:2 ratio in the future so long as A uses the equity method to record its investment in B regardless of the amount of consideration A paid for the acquisition of B. a. True b. False 6. P acquired 80% of S Company's common stock on 1/1/16. At that time, S's equipment (8-year remaining life) had a book value of $140,000 and a fair value of $100,000. On 12/31/20, P's equipment had book value of $750,000 and fair value of $850,000, while S's equipment account showed book value of $110,000 but had fair value of $130,000. What should be the consolidated balance of the Equipment account at 12/31/20