1. Major bought 90% of Minor on Day 1, Year 1. At that time, the fair value of the noncontrolling interest was $3 million. At the date of acquisition, the only asset of Minor with a fair value greater than its book value was equipment. The annual extra amortization for this equipment that should be recognized in consolidation =100,000. In Year 1, Minor had net income on its books of $400,000. It paid out a total of 50,000 in dividends. At the end of Year 1, the noncontrolling interest on the balance sheet should equal:

   		$3,000,000
   		$3,025,000
   		$3,030,000
   		$3,040,000

2. Tiny has 100,000 shares of stock outstanding. On Day 1, Year 2, Giant bought 10,000 shares of Tiny for $10 per share. On day 1, Year 2, Giant bought another 20,000 shares for $12 per share, and obtained significant influence. On Day 1, Year 3, Giant bought another 55,000 shares for $13 per share, and obtained control. On Day 1, Year 4, Giant bought the remaining 15,000 shares for $14 per share. At what point, if any, will Giant recognize a holding gain on the 10,000 shares it bought on Day 1, Year 1?

   		It will not recognize any holding gain.
   		On Day 1, year 2, when it obtains significant influence
   		On Day 1, Year 3, when it obtains control
   		On Day 1, Year 4, when it obtains 100% ownership

3. Huge bought 90% of the shares of Sub, several years ago. This year, it sells 80% of Subs stock for $9 per share, at a time when the book value per share was $8. Huge no longer has control. Which of the following statements is correct, under GAAP, for the consolidated statements?

   		Huge will report a gain, in net income, of $1 per share sold
   		Huge will report a gain, in other comprehensive income, of $1 per share sold
   		Huge will record an increase in paid-in capital of $1 per share sold
   		Huge will not make any entry to record this transaction.