3 pts Question 5 Which observation concerning "goodwill" is NOT correct? Once written down, US GAAP allows it to be written up for recoveries Goodwill must be tested for impairment qualitatively and/or quantitatively at least annually, Goodwill impairment losses are recognized in income from continuing operations, It must be reported as a separate line item in the balance sheet. Question 6 3 pts Under which concept is goodwill assigned to the NCI for consolidated financial reporting purposes? The entity concept The parent company concept Neither the entity nor parent company concept. Both the entity and parent company concept With cash, Portlandia Corp. bought 80% of Salem Corp. for $100,000 over book value on Jan. 1. 20X6. At date of acquisition, Salem's stockholder equity section contained Common Stock & Retained Earnings. During 20X6, Salem Co. earned Income (not a loss) & paid dividends. Portlandia made all required journal entries using the equity method. On Portlandia's books, which journal entry is needed to record their portion of Salem's income at end of 20x6: Debit Investment in Salem & Credit Income from Salem Debit Income from Salem & Credit Investment in Salem Debit Income from Salem Credit Investment in Salem & NonControlling Interest in Net Assets of Salem Debit Investment in Salem & NonControlling Interest in Net Assets of Salem: Credit Income from Salem No journal entry is needed 4 pts D Question 14 With cash, Portlandia Corp. bought 80% of Salem Corp. for $100.000 over book value on Jan. 1, 20X6. At date of acquisition, Salem's stockholder equity section contained Common Stock & Retained Earnings. During 20X6, Salem Co, earned income (not a loss) & paid dividends. Portlandia made all required journal entries using the equity method On Portlandia's books, which is the correct journal entry to record dividends Salem paid to Portlandia during 20x6: Debit Cash & Credit Investment in Salem Debit Cash & Credit Income from Salem JO atv A Mc Groww 12. MacBook og Dil 80 88 A ! 1 $ 4 & 7 ) 0 8 2 5 9 3 6 { E Q T W R Y Y P. T U 0 S A D F G H J OOO