Multiple choices

i. On August 15t.2020, the X Company acquired 70% of the common shares ofthe Y Company for $700,000. On that date, the fair value on's identiable net assets was $600,000 and the books value of the shareholders' equity was $500,000. Assume the acquisition method will be used to prepare consolidated nancial statements, what amount of non-controlling interest should be reported on the consolidated balance sheet at the date of acquisition? a. $600,000 b. $420,000 c. Zero d. $300,000 ii. Using the information from the previous question (i) , assume that X is a joint venture, what amount of non-controlling interest should be reported on the consolidated balance sheet on the date of acquisition a. $150,000 b. Zero c. $180,000 d. $200,000 iii. During 2019, Y Company a 90% owned subsidiary sold inventory to its parent, X Company, for $1,000,000 at a 25% mark-up on cost. 30% of this inventory remained in X's inventory at December 31\". 2019. Both companies have a tax rate of 40% and a December 31\". year end. What adjustment will be needed to arrive at X's consolidated inventory for the year ended December 35t. 2019? a. A deduction of $75,000 b. A deduction of $60,000 c. A deduction of $36,000 d. A deduction of $45,000. iv. What adjustment will be made to consolidated net income in 2019? a. An addition of $60,000 b. An addition of $36,000 c. A deduction $60,000 d A deduction of $36,000. vi.. vii. viii. The X Company acquires the Y Company's common shares for cash. On the date of acquisition, Y had Goodwill of $100,000 on its books. Which of the following statements regarding Y's Goodwill on the date of acquisition is correct? a. Y's goodwill is considered an identiable asset and should therefore be included in Parent Company/s Purchas Price Discrepancy calculation. b. Y's goodwill is considered an identifiable asset and should therefore be excluded from the Parent Company's Purchase Price Discrepancy calculation. c. Y's goodwill is not considered an identiable asset and should therefore be excluded from Parent Company/s Purchase Price Discrepancy calculation. d. Y's goodwill is not considered an identiable asset and should therefore be included in Parent Company/5 Purchase Price Discrepancy calculation. On January 1\". 201 9, X Company purchased 15% of the common shares of B Company for $80,000. At that time, the shareholders' equity of B had a book value of $400,000. Any purchase discrepancy was allocated to equipment, which had a useful life of5 years. B's net income during the year was $120,000. B paid dividends of $100,000 on its common shares. The fair value of A's investment was $81,000. Assume that X accounts for its investment in B using the cost method. How much income should X report from its investment in B for 2019? a. $11,000 b. $14,000 c. $15,000 (:1. $18,000. Assume that X accounts for its investment in B using the equity method. How much income should X report from its investment in B for 2019? a. $11,000 b. $14,000 L2. $1 5,000 d. $18,000. On April 15t.2019, X bought 75% of Y Company for $500,000. On that date Y had net assets with a book value of $600,000 and with the exception of a Trademark which fair value was $40,000 higher than its book value, all fY's fair values approximated its book values on the date of acquisition. Assuming that a $5,000 Goodwill Impairment Loss was recorded by X , what would be the amount of Consolidated Goodwill on March 31 \".2020? Assume that there was no amortization of any purchase price discrepancy during the year. a. ($65,000) b. $20,000 c. $21,667 d. $26.667