2) Company P and Company S (two unrelated companies) reported balance sheets on De- cember 31, 2022, as follows: Current assets Noncurrent assets. Total assets. Liabilities Common stock, $1 par value Common stock, $1 par value Additional paid-in capital. Retained earnings. Total liabilities & equity. P $5,000 10,000 $15,000 $ 9,000 500 2,000 3,500 $ 15,000 A) T F B) T F $ 2,000 3,000 $5,000 $ 4,000 100 700 200 $5,000 Additional information: 1. On January 2, 2023, Company P exchanged 100 shares of its own $1 par value common stock for 75% of Company S's $1 par value common stock. 2. The fair value of Company P's stock given in exchange for Company S's stock was $50 per share (market price). 3. The fair (appraised) value of Company S's identifiable intangible assets (NCA) was $500 greater than its book value at the date Company P acquired Company S. 4. The fair (appraised) value of all other assets and liabilities of Company S's were equal to their book values at the date Company P acquired Company S. If a consolidated balance sheet is prepared immediately after the exchange, indicate whether the following statements are "True" or "False" by circling your answers below: The amount of consolidated total assets on January 2, 2022 is $25,667. The non-controlling interest account reported using the fair value of the minority shareholders' claim on January 2, 2022 is $375. C) T F The consolidated balance sheet on January 2, 2022 reports an investment in S of $5,000. D) T F The balance of consolidated retained earnings January 2, 2022 is $3,500.

2) Company P and Company S (two unrelated companies) reported balance sheets on December 31,2022 , as follows: Additional information: 1. On January 2, 2023, Company P exchanged 100 shares of its own $1 par value common stock for 75% of Company S's $1 par value common stock. 2. The fair value of Company P's stock given in exchange for Company S's stock was $50 per share (market price). 3. The fair (appraised) value of Company S's identifiable intangible assets (NCA) was $500 greater than its book value at the date Company P acquired Company S. 4. The fair (appraised) value of all other assets and liabilities of Company S's were equal to their book values at the date Company P acquired Company S. If a consolidated balance sheet is prepared immediately after the exchange, indicate whether the following statements are "True" or "False" by circling your answers below: A) T F The amount of consolidated total assets on January 2,2022 is $25,667. B) T F The non-controlling interest account reported using the fair value of the minority shareholders' claim on January 2,2022 is $375. C) T F The consolidated balance sheet on January 2, 2022 reports an investment in S of $5,000. D) T F The balance of consolidated retained eamings January 2, 2022 is $3,500