5) On June 1, 2014, Puell Company acquired 100% of the stock of Sorrell Inc. On this date, Puell had Retained Earnings of $100,000 and Sorrell had Retained Earnings of $50,000. On December 31, 2014, Puell had Retained Earnings of $120,000 and Sorrell had Retained Earnings of $60,000. The amount of Retained Earnings that appeared in the December 31, 2014 consolidated balance sheet was A) S130,000. B) $120,000. C) $170,000. D) $180,000. 6) A newly acquired subsidiary had pre-existing goodwill on its books. The parent company's consolidated balance sheet will A) not show any value for the subsidiary's pre-existing goodwill. B) not show any value for the pre-existing goodwill unless all other assets of the subsidiary are stated at their full fair value. C) treat the goodwill similarly to other intangible assets of the acquired company. D) always show the pre-existing goodwill of the subsidiary at its book value 7) On January 1, 2014, Packaging International purchased 90% of Shipaway Corporation's outstanding shares for $135,000 when the fair value of Shipaway's net assets were equal to the book values. The balance sheets of Packaging and Shipaway Corporations at year-end 2013 are summarized as follows: PackagingShipaway $590,000 $180,000 Assets Liabilities Capital stock Retained earnings 360,000 160,000 $70,000 $30,000 90,000 60,000 If a consolidated balance sheet was prepared immediately after the business combination, the noncontrolling interest would be A) $16,667. B) $15,000. C) $13,500. D) $9,000