Assume that a parent Corporation had appropriately accounted for the December 31, 2020, business combination with its 80% owned subsidiary and that subsidiary had a net income of $80,000 for the year ended December 31, 2021, Assume further that on December 20, 2021, subsidiarys board of directors declared a cash dividend of $0.60 a share on the 50,000 outstanding shares of common stock owned by Parent. Parents journal entry to record the declaration of dividends is:

a.

Intercompany dividends payable debit $ 24,000 and cash credit $ 24,000.

b.

Intercompany dividends receivable debit $24,000 and Investment in subsidiary credit $ 24,000.

c.

Cash debit $ 30,000 and Intercompany dividends receivable credit $ 30,000.

d.

Cash debit $ 30,000 and Intercompany dividends payable credit $ 30,000.

On February 28, 2020, Alpha Corporation acquired 90% of the outstanding common stock of Bita Company for $500,000 cash. Out-of-pocket costs of the business combination paid byAlpha on February 28, 2020, were in the form of Finders and legal fees relating to business combination $50,000 and Costs associated with SEC registration statement $10,000,only the fair value of plant assets exceeds its carrying amount by $90,000, net assets of Bita $400,000. The amount of goodwill is:

a.

$109,000.

b.

68,000

c.

$20,000

d.

$70,000.