1. On January 1, Year One, the Curry Corporation pays $7 million for all of the outstanding capital stock of a company that holds three assets and no liabilities. It has a building with a net book value of $2.3 million and a fair value of $2.8 million. It has equipment with a net book value of $1.1 and a fair value of $900,000. It holds several patents with no book value but a fair value of $1.3 million. Curry believes that this new subsidiary will be especially profitable for at least ten years. On a consolidated balance sheet as of December 31, Year One, what will Curry report as its goodwill balance? a) $1.3 million b) $1.8 million c) $2.0 million d) $3.6 million 2. An investor spends $23,000 for shares of another company late in Year One. The shares are worth $24,000 at the end of that year. Early in Year Two, a $1,200 dividend is received from this investment. Shortly thereafter, the shares are sold for $26,000. If this asset is an investment in trading securities, what is the impact on net income in Year Two? a) Increase by $1,200.|| b) Increase by $2,000. c) Increase by $3,200. d) Increase by $4,200. 3. Early in Year One, Jackson Corporation purchased 150 shares of Riley Corporation for S46 per share. The investment is classified as available-for-sale. At the end of Year One, Riley's stock is selling on a stock exchange for $43 per share. Jackson's reported net income for the year was $235,000. What should Jackson report as its comprehensive income for Year One? a) $228,100 b) $228,550 c) $234,550 d) $235,000