1- On January 1, 2019, Power Corporation acquired 90% of Star Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10% of the book value of Star at that date. Power uses the equity method in accounting for its ownership of Star. On December 31, 2019, the trial balances of the two companies are as follows:

Item	Power		Star
	Debit	Credit	Debit	Credit
Current Assets	$200,000		$120,000
Depreciable Assets	300,000		225,000
Investment in Star	139,500
Depreciation Expense	30,000		25,000
Other Expenses	100,000		60,000
Dividends Declared	30,000		10,000
Accumulated Depreciation		$120,000		$75,000
Current Liabilities		62,000		25,000
Long-Term Debt		75,000		90,000
Common Stock		100,000		75,000
Retained Earnings		120,000		65,000
Sales		300,000		110,000
Income from Star		22,500
Total	$799,500	$799,500	$440,000	$440,000

The required Optional elimination entry as of December 31, 2019.

Select one:

a. Dr. Depreciation Expense S 50,000 Cr. Building & Equipment - S 50,000

b. Dr. Accumulated Depreciation S 75,000 Cr. Building & Equipment - S 75,000

c. Dr. Depreciation Expense S 75,000 Cr. Building & Equipment - S 75,000

d. Dr. Accumulated Depreciation S 50,000 Cr. Building & Equipment - S 50,000

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3- 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. $210,000

c. $112,500

d. $150,000

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3- On March 1, 2020 Ajax Corporation acquired all the assets and liabilities of Chelsea Corporation by issuing shares of its common stock. The following is a balance sheet data for the companies prior to the business combination and immediately following the combination:

	Ajax Corporation	Chelsea Corporation	Combined
Cash	$ 75,000	$ 35,000	$ 110,000
Accounts receivable	92,000	30,000	122,000
Inventory	45,000	43,000	98,000
Equipment (net)	420,000	150,000	620,000
Goodwill			XXX
Total Assets	$ 632,000	$ 258,000	XXX
Accounts payable	$ 375,000	$ 125,000	$ 500,000
Common stock, $2 par	120,000	40,000	200,000
Additional paid-in capital	85,000	30,000	245,000
Retained earnings	52,000	63,000	XXX
Total Liabilities & Equity	$ 632,000	$ 258,000	XXX

At what price was Ajax stock issued for this transaction?

Select one:

a. $ 11.125

b. $ 3.42

c. $ 7.42

d. $ 6.00