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5. In the case of an intercompany sale of land, a consolidation entry is prepared: A) In neither the period of the sale nor the

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5. In the case of an intercompany sale of land, a consolidation entry is prepared: A) In neither the period of the sale nor the following periods B) Only in the periods following the sale and during which the land is held by one of Only in the period of the intercompany sale of the land D) In the period of the intercompany sale of the land and in the following periods that the land is held by one of the affiliated companies 6. If impaired goodwill subsequently regains its value A) the loss recovery cannot be recognized. B) the company may choose whether or not to recognize the recovery. C) it can be written up to its new value. D) it can be written up, but only to its original value. 7. Assume the following facts relating to a 70% owned subsidiary company BOY Stockholders' Equity $800,000 BOY unamortized AAP 90,000 Net income of subsidiary (not including AAP amortization) 170,000 AAP amortization expense 15.000 Dividends declared and paid to noncontrolling shareholders 4,000 What is the amount reported as noncontrolling equity at the end of the year? A) $299,000 B) $305,000 C) $314,000 D) $309,500 8. 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. Determine the total goodwill to be recognized at acquisition date. A) $100,000 B) S-0- C) $102,500 D) $110,000

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