On April 1 st 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 f Ys 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 st 2020 Assume that there was no amortization of any purchase price discrepancy during the year ($65,000) $20,000 $21,667 $26,667 ix You are preparing the consolidated financial statement for the X Company and its 80 owned subsidiary Y Ltd, for the year ended July 31 st 2019 Which of the following transactions would give rise to a deferred income tax asset being recorded on the consolidated balance sheet X sells inventory to Y at a markup of 30 , and Y resells all of this inventory prior to the year end X sells inventory to Y at a markup of 30 , and Y resells 60 of the inventory prior to the year end Y sells inventory that it had acquired from X in the previous year to an unrelated party at a markup of 30 Y sells inventory that it had acquired from X in the previous year to an unrelated party at $1,000 x Both a parent and its subsidiary use the FIFO method to account for inventory and both turn over their inventories at least six months a year At the end of 2019, there was unrealized profit in inventory as a result of up stream transaction When preparing the consolidated statements for 2020, which of the following financial statement accounts will not require a consolidated adjustment a Cost of Goods sold b Income Tax expense c Inventory d Income attributable to non controlling interest

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On April 1 st .2019, X bought 75% of Y Company for $500,000. On that date Y had net assets with a book value of

On April 1^st.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 f Ys 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^st.2020? Assume that there was no amortization of any purchase price discrepancy during the year.

($65,000)
$20,000
$21,667
$26,667

ix. You are preparing the consolidated financial statement for the X Company and its 80% owned subsidiary Y Ltd, for the year ended July 31^st.2019. Which of the following transactions would give rise to a deferred income tax asset being recorded on the consolidated balance sheet?

X sells inventory to Y at a markup of 30%, and Y resells all of this inventory prior to the year-end.
X sells inventory to Y at a markup of 30%, and Y resells 60% of the inventory prior to the year end.
Y sells inventory that it had acquired from X in the previous year to an unrelated party at a markup of 30%
Y sells inventory that it had acquired from X in the previous year to an unrelated party at $1,000.

x. Both a parent and its subsidiary use the FIFO method to account for inventory and both turn over their inventories at least six months a year. At the end of 2019, there was unrealized profit in inventory as a result of up-stream transaction. When preparing the consolidated statements for 2020, which of the following financial statement accounts will not require a consolidated adjustment?

a. Cost of Goods sold

b. Income Tax expense

c. Inventory

d. Income attributable to non-controlling interest.