1)If a parent company acquires wholly owned subsidiary at an amount greater than the book value, the excess should be

a. allocated to expense on the date of acquisition.

b. allocated to identifiable assets to the extent of their fair values, with any remainder allocated to goodwill.

c. allocated to goodwill, with any remainder allocated to the identifiable assets.

d. set up as a liability to the controlling interest

2) A consolidated income statement will show

a. revenue and expense transactions between the consolidated entity and parties outside the affiliated group.

b. only the parent companys net income.

c. only the income of partially owned subsidiaries.

d. only the income of wholly owned subsidiaries.

3) Under IFRS, equity investments are generally recorded and reported at

a. amortized cost.

b. fair value.

c. original cost.

d. maturity value.