1. Great owns 75% of the stock of Little. At the end of the year, Little owes Great $10,000 for an intercompany loan. In consolidation, how much of this intercompany loan should be eliminated:
   1. Zero (the full loan should remain in the balance sheet)
   2. 25%
   3. 75%
   4. All of it.
2. Big bought 80% of Small on June 1, year 1. In Year 2, Big bought another 15% of Small. Under GAAP, which of the following is true:
   1. In Year 2, Big will recompute the purchase price acquisition, and will use the fair values of Smalls assets on the date of the final stock purchase to recompute goodwill.
   2. In Year 2, Big will assume that all the money paid for the final 15% of the shares increases consolidated goodwill. It will not revise the figures for other assets and liabilities of Small.
   3. In Year 2, Big will treat the payments for the additional 15% as equity transactions. Carrying values for goodwill and the other assets and liabilities of Small will not be changed from what was recorded in Year 1.
   4. The payment for the 15% will be expensed in Year 2.
3. Which of the following factors does NOT affect the accounting for noncontrolling interest in the consolidated balance sheet from one year to the next, assuming a parent keeps control?
   1. Dividends paid by the subsidiary
   2. Losses of the subsidiary
   3. Purchases of additional stock by the controlling shareholder
   4. Changes in the market value of the subsidiary (assuming no impairment)