9. Topic: Changes in asset values subsequent to acquisition P Company assigned a fair value of $600,000 to land it acquired when it purchased S Company. Ten months later, P obtained information that the land was worth $550,000 at the date of acquisition. Two years after the acquisition, the land is worth $700,000. How does P account for these value changes?

a. Loss of $50,000, reported on the income statement; no recognition of increase in value to $700,000. b. Increase goodwill by $50,000; no recognition of increase in value to $700,000. c. Decrease goodwill by a net amount of $100,000. d. Loss of $50,000 and gain of $150,000, reported on the income statement.

10. Topic: Controlling investment A company acquires all the assets and liabilities of another company in a statutory merger. Which statement is false? a. The acquiring company reports the acquired assets and liabilities at fair value at the date of acquisition. b. The acquiring company does not report acquired intangible assets unless they are already reported on the acquired companys books. c. The acquired company no longer exists as a separate entity. d. the acquiring company does not revalue its assets and liabilities to fair value at the date of acquisition

**Please provide computations and explanation. Thank you!!