1. The Hoover Corporation acquired 80 percent of the 100,000 outstanding voting shares of Rainbow, Inc., for $6.40 per share on January 1, 2020. The remaining 20 percent of Rainbows shares also traded actively at $6.40 per share before and after Hoovers acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Rainbows underlying accounts except that a building with a 5-year future life was undervalued by $62,000 and a fully amortized trademark with an estimated 10-year remaining life had a $67,000 fair value. At the acquisition date, Rainbow reported common stock of $100,000 and a retained earnings balance of $260,000. On January 1, 2021, Rainbow reported retained earnings of $330,000. During year 2021, Rainbow reported net income of $170,000 and declared dividend of $20,000. Assume Hoover applied equity method to account for its investment in Rainbow, the balance of Investment in Rainbow Hoover reported on December 31, 2021 should be:

		$634,970.
		$657,440.
		$649.800
		$616,250.

2. The Hoover Corporation acquired 80 percent of the 100,000 outstanding voting shares of Rainbow, Inc., for $6.40 per share on January 1, 2020. The remaining 20 percent of Rainbows shares also traded actively at $6.40 per share before and after Hoovers acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Rainbows underlying accounts except that a building with a 5-year future life was undervalued by $62,000 and a fully amortized trademark with an estimated 10-year remaining life had a $67,000 fair value. At the acquisition date, Rainbow reported common stock of $100,000 and a retained earnings balance of $260,000. On December 31, 2021, Hoover has trademark with a book value of $148,000 and Rainbow has trademark with a book value of $206,000. What is the consolidated balance for the Trademarks account as of December 31, 2021?

		$354,000.
		$414,300.
		$421,000.
		$407.600

3. On January 1, 2020, Chamberlain Corporation pays $413,200 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $21,400 results from the acquisition. On December 31, 2021, Neville reports revenues of $489,000 and expenses of $382,000 and Chamberlain reports revenues of $789,000 and expenses of $473,000. The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation?

		$367,360
		$388,760
		$489,000
		$401,600