9. On January 1, 2021, Gooch Company acquires 80% of the outstanding common stock of House Inc., for a purchase price of $12,400,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $3,100,000. The book value of the Houses stockholders equity on the date of acquisition is $10,000,000 and its fair value of identifiable net assets is $10,850,000. The acquisition-date acquisition accounting premium (AAP) is allocated $600,000 to equipment with a remaining useful life of 10 years, and $250,000 to a patent with a remaining useful life of 5 years.

What portion of the AAP should be assigned to noncontrolling interest?

Select one:

A. $4,400,000

B. $4,650,000

C. $1,100,000

D. $-0-

18. On January 1, 2021, Consolidated Company purchased 100% of the common stock Avergy Industries for $720,000. On that date, Avergy had common stock of $100,000 and retained earnings of $420,000. Equipment and land were each undervalued by $50,000 on Avergys books. There was a $40,000 overvaluation of Bonds Payable, as well a $60,000 undervaluation of inventory. The consolidation entries necessary for a date of acquisition balance sheet include all of the following except:

Select one:

A. Inventory debit, $60,000

B. Equipment debit, $50,000

C. Land debit, $50,000

D. Bonds Payable credit, $40,000

41. Chesney Company is a wholly-owned subsidiary company which reports sales of $750,000 and net income of $250,000 for the calendar year in which it is acquired on May 1st. What amount of sales and net income are includable in consolidated income statement in the year of acquisition assuming that sales and net income are earned evenly over the year?

Select one:

A. Sales $500,000; Net income $166,667

B. Sales $250,000; Net income $83,333

C. Sales $750,000; Net income $250,000

D. Answer cannot be determined based on the given information.