Hornet plc acquired 1,080,000 shares of the 1,350,000 outstanding shares of Alton on 1 January 2009 for a cash consideration of $ 120 M. The fair value of net assets of Alton at this date was $135 M and full goodwill method is used. During 2009 until 31 December 2009 Alton made a net income of $75. On 1 January 2010, Hornet acquired 135,000 additional shares in Alton for $ 45 M.

The purchase of the 135,000 additional shares in Alton on 1 January 2010 will result in?

Select one:

a. Goodwill being increased by 10% but No Gain or loss is recognized

b. Goodwill being decreased by $15 M

c. Two of the provided answers are correct

d. Control not affected

e. Goodwill being derecognized for $15 M

f. None of the answers is correct

The purchase of the 135,000 additional shares in Alton on 1 January 2010 will result in ?

Select one:

a. Retained earnings for the group will increase by 10%

b. None of the answers is correct

c. Two of the provided answers are correct

d. A Loss of $ 22.5 M

e. Goodwill will increase to 16.5 M

f. Retained earnings for the group will decrease by 22.5 M

Non-Controlling interest on 1 January 2009 is?

Select one:

a. $20 M

b. None of the answers is correct

c. $30 M

d. $13.125 M

e. $7.5 M

The purchase of the 135,000 additional shares in Alton on 1 January 2010 will result in non-controlling interests to?

Select one:

a. Decrease by $ 15 M

b. Increase by $45 M

c. Non-Controlling interests will not be affected as this is a transaction between the owners.

d. None of the answers is correct

e. Decrease by $ 22.5 M