1) Plumas, Inc., owns 90 percent of Santa Cruz Corporation. Both companies have been profitable for many years. During the current year, the parent sold for $143,500 merchandise costing $90,000 to the subsidiary, which still held 20 percent of this merchandise at the end of the year. Assume that the tax rate is 40 percent and that a consolidated tax return was filed. What deferred income tax asset amount is created?

A)$3080

B)$4280

C)$14980

D)$0

2) Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $870,000 and cost of goods sold of $652,500. For this same period, Bottom has sales of $370,000 and cost of goods sold of $222,000. During the current year, Top sold merchandise to Bottom for $170,000. The subsidiary still possesses 50 percent of this inventory at the current year-end. Top had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?

A) $1,070,000 and $747,000.

B) $1,070,000 and $725,750.

C) $1,070,000 and $832,000.

D) $1,033,000 and $747,000.

3) Marc, Inc., owns 75 percent of SRS Company. During the current year, SRS reported net income of $105,000 but paid a total cash dividend of only $20,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 40 percent.

A) $8,940.

B) $5,100.

C) $28,140.

D) $12,180.

4)On January 1, Tesco Company spent a total of $4,729,000 to acquire control over Blondel Company. This price was based on paying $481,000 for 20 percent of Blondels preferred stock and $4,248,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Blondels common stock was $472,000. The fair value of the 80 percent of Blondels preferred shares not owned by Tesco was $1,924,000. Blondels stockholders equity accounts at January 1 were as follows:

Preferred stock9%, $100 par value, cumulative and participating; 10,000 shares outstanding $1,000,000

Common stock$50 par value; 40,000 shares outstanding $2,000,000

Retained earnings $3,980,000

Total stockholders equity$6,980,000

Tesco believes that all of Blondels accounts approximate their fair values within the companys financial statements. What amount of consolidated goodwill should be recognized?

A)$481,000.

B)$626,000.

C)$176,500.

D)$145,000.