1) When Peter Pan Co. acquired 80% of the common stock of Smee Corp., Smee owned land with a book value of $70,000 and a fair value of $100,000.

What amount should have been reported for the land in a consolidated balance sheet at the acquisition date? A. $56,000. B. $70,000. c. $96,000. d. $100,000

2)Pickens Company acquires 80% of Saluda Company for $500,000 on January 1, 2015. Saluda reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Saluda earns income and pays dividends as follows:

	2015	2016	2017
Net Income	$100,000	$110,000	$120,000
Dividends	40,000	50,000	60,000

Assume the equity method is applied. Compute the noncontrolling interest in the net income of Saluda at December 31, 2017. A. $22,600. B. $24,000. C. $23,400. D. $20,000. E. $18,600.