A parent company acquires a subsidiary on January 1, 2017. The subsidiary's bonds payable (five-year remaining life) are undervalued by $5,000 at the date of acquisition. Straight-line amortize the premium/discount, and directly adjust bonds payable for premium/discount amortization. On the consolidation working paper prepared at December 31, 2018 (two years later), eliminating entry (R) includes:

	A.	A debit to bonds payable of $5,000.
	B.	A debit to interest expense of $1,000.
	C.	A credit to bonds payable of $4,000.
	D.	A credit to interest expense of $1,000.

Purus Corporation has a financial relationship with Swift Financial Inc. Although Purus owns none of Swift's voting stock, analysis determines that Swift is a variable interest entity and Purus is its primary beneficiary. How is the noncontrolling interest in Swift reported on Purus' consolidated balance sheet at the date Purus first consolidates it, assuming Swift and Purus were already under common control?

	A.	In the equity section of the consolidated balance sheet, at Swift's book value.
	B.	As an investment account in the asset section of Purus' consolidated balance sheet, at Swift's book value.
	C.	In the equity section of the consolidated balance sheet, at Swift's fair value.
	D.	As an investment account in the asset section of Purus' consolidated balance sheet, at Swift's fair value.

PC Company purchased all of the common stock of Silicon Company by issuing 2,000,000 shares of its $0.50 par value common stock, with a market value of $25/share. PC Company incurred $150,000 in registration and issuing costs, and $100,000 in consulting and legal fees, paid in cash. The book value of Silicon Company at the date of acquisition was as follows: Eliminating entry (R) includes a debit to goodwill for:

	A.	$44,200,000
	B.	$47,000,000
	C.	$44,100,000
	D.	$47,250,000