12. On January 1, 2017, Franklin Company acquires 80% of the outstanding common stock of LaSalle, for a purchase price of $970,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $240,000. The book value of the LaSalle's stockholders' equity on the date of acquisition is $700,000 and its fair value of net assets is $1,100,000. The acquisition-date acquisition accounting premium (AAP) is allocated $250,000 to equipment with a remaining useful life of 10 years, and $150,000 to a patent with a remaining useful life of 6 years. What portion of the AAP should be assigned to noncontrolling interest? A) S-O- B) $100,000 C) $110,000 D) $102,500 13. Deferred profit on intercompany asset sales A) is not considered as part of consolidating elimination entries. B) is always 100% eliminated. C) is eliminated only on upstream sales. D) is accounted only by the noncontrolling interests. 14. Intercompany gains on sale of land are deferred A) in perpetuity. B) until the consolidated entity is sold. C) until the land is sold. D) over the period that the land produces revenue. 15. A bargain purchase occurs when A) the purchase price of a subsidiary is less than the book value of the investee's net assets. B) the purchase price of a subsidiary is greater than the fair value of the investee's net assets. C) the purchase price of a subsidiary is less than the fair value of the investee's net assets. D) the assets of the investee are undervalued on the balance sheet