1- Juventus Company acquired 75 percent of Manchester Company's outstanding common stock for cash on January 3, 2019. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Manchester Company's net assets at the date of acquisition. Selected balance sheet data at December 31, 2019, are as follows:

Juventus Manchester

Liabilities $144,000 $144,000

Common Stock $150,000 $60,000

Additional paid in capital $100,000 $84,000

Retained Earnings $110,000 $72,000

$504,000 $360,000

What amount will Juventus Company report as common stock outstanding in its consolidated balance sheet at December 31, 2019?

Select one:

a. $195,000

b. $112,500

c. $150,000

d. $210,000

2- Juventus Company acquired 75 percent of Manchester Company's outstanding common stock for cash on January 3, 2019. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Manchester Company's net assets at the date of acquisition. Selected balance sheet data at December 31, 2019, are as follows:

Juventus Manchester

Liabilities $144,000 $144,000

Common Stock $150,000 $60,000

Additional paid in capital $100,000 $84,000

Retained Earnings $110,000 $72,000

$504,000 $360,000

What amount should be reported as noncontrolling interest in net assets in Juventus Company's December 31, 2019, consolidated balance sheet?

Select one:

a. $36,000

b. $54,000

c. $0

d. $90,000

3- West Ham Company acquired 30 percent of Arsenal Company's common stock, at underlying book value of $110,000 on January 1, 2019. Arsenal has 100,000 shares of $3 par value, 5 percent cumulative preferred stock outstanding. No dividends are in arrears. Arsenal reported net income of $165,000 for 2019 and paid total dividends of $87,000 for both the preferred stock and common stock. West Ham uses the equity method to account for this investment.

Based on the preceding information, what amount would be reported by West Ham Company as the balance in its investment account on December 31, 2019?

Select one:

a. $133,400

b. $142,000

c. $123,400

d. $100,000