1. On which section of the financial statements is goodwill reported?

		As an asset on the balance sheet
		As a liability on the balance sheet
		As an expense on the income statement
		As an equity item on the balance sheet

2. Acquirer Inc. issued $1,500 of its stock to purchase 100% of Acquiree Inc. Acquiree reported $1,800 of assets and $1,100 of liabilities on its balance sheet when acquired. The fair value of Acquirees land was $400 at the time of acquisition, but its historical cost was $500. The amount of goodwill Acquirer would report on its consolidated balance sheet is

		$700
		$800
		$900
		$1,000

3. Acquirer Inc. paid $900 in cash to purchase 90% of Acquiree Inc. Acquiree reported $1,000 of assets and $180 of liabilities on its balance sheet when acquired. The fair value of Acquirees equipment was $20 at the time of acquisition, but its historical cost was $30. The amount of noncontrolling interest Acquirer would report on its consolidated balance sheet is

		$80
		$90
		$100
		$110

4. If the functional currency is the local currency, then

		Translation occurs using the remeasurement process
		Translation occurs using the current rate method
		Translation is optional, and conducted at the discretion of the acquirer
		Translation does not need to be conducted since the local currency is the functional currency

5. What is true of the temporal method of consolidation for an American parent company with autonomous foreign subsidiaries

		The subsidiaries will use the U.S dollar for reporting purposes
		A currency translation is not likely to be necessary
		The currency will be translated using current rates
		The parent company will recognize a remeasurement gain or loss on their income statement