7. The following information pertains to questions 7-14 On January 1, 2019, Pali Company acquired 75% of Silicon Company's voting stock for $44,300 in cash. The noncontrolling interest had an estimated fair value of $12,700. Silicon's assets and liabilities at the date of acquisition were reported at amounts approximating fair value, but it had previously unreported indefinite life identifiable intangibles valued at $21,000. Silicon's total shareholders' equity at January 1, 2019 was as follows: Capital stock Retained earnings Accumulated other comprehensive income Total $ 2.000 2.900 100 $ 5.000 It is now December 31, 2020 (two years later). Identifiable intangibles impairment for 2019 was $1,000 and there was no goodwill impairment. There is no identifiable intangibles impairment for 2020, but goodwill impairment for 2020 is $200. Pali uses the complete equity method to account for its investment. December 31, 2020 trial balances for Pali and Silicon follow. Pali Dr (Cr) 5,000S 42.000 Silicon Dr (Cr) 1.000 28,000 $ 45,892 Current assets Property, net Intangibles Investment in Silicon Goodwill Liabilities Capital stock RE, beginning AOCI, beginning Sales revenue Equity in net income of Silicon Equity in OCI of Silicon Cost of goods sold Operating expenses Other comprehensive income Total (53.887) (20,664 (15.000) (2.000 (20.000 (4,400 (1.100) (116) (25.000) (14.000) (1.190) (15) 20.000 9.000 4,000 3,200 (700) (20) OS What is the initial goodwill related to this acquisition? A) $52,000 B) $18,300 C) $31,000 D) $36,000 8. What percentage of initial goodwill is allocated to the controlling interest? A) NO B) 85% C) 754 D) 70% controlling 9. On the consolidated income statement for 2020, what is the balance for interest in net income? A) S10 B) $450 C) 164 D) $410 controlling 10. On the consolidation working paper for 2020, what is the credit to interest in Silicon for eliminating entry A) S 500 B) S1629 C S1600 D) SI.589 11. On the consolidation working paper for 2020, what is the credit to no controlling interest in Silicon for eliminating entry (R) A) SI2.750 B) $13,000 C S11.200 D) 512,700 12. What is consolidated net income for 2020? A) 52.600 B) $2.190 C) S2 800 D) $3.520 13. On the consolidated balance sheet at December 31, 2020, what is the balance for consolidated retained eamings? A) S21.060 B) S2000 C) 2190 D) $20,000 14. What is consolidated compchensive income for 2020 A) 52.185 B) S2600 C) 2005 D) $3.320
