5)Perch Co. acquired 80% of the common stock of Salem Corp. for $1,600,000. The fair value of Salem's net assets was $1,850,000, and the book value was $1,500,000. The noncontrolling interest shares of Salem Corp. are not actively traded.

What amount of goodwill should be attributed to Perch at the date of acquisition? A. $150,000. B. $250,000. C. $0. D. $120,000. E. $170,000.

6) When Peter Pan Co. acquired 80% of the common stock of Smee Corp., Smee owned land with a book value of $70,000 and a fair value of $100,000.

What amount should have been reported for the land in a consolidated balance sheet at the acquisition date? A. $56,000. B. $70,000. C. $80,000. D. $96,000. E. $100,000