On Jan.1, 2019, EL acquired 70% voting shares of EA which is operating in the U.S. On the acquisition day, only its equipment with a remaining useful life of 10 years was undervalued by 4,000.

Assume the spot rates given under A (this rate should be used), also assume the average spot rate is 1.2, the spot rate on the day year-end inventory was purchased is 1.12, the spot rate on the day when dividends are declared is 1.19.

1. 5) What is the difference in gain or loss from the translation of the acquisition differential amortization between PCT and FCT method?
2. 6) What is the difference in the translated unamortized acquisition differential between PCT and FCT as of Dec 31, 2019?
3. 7) What is the difference in the exchange rate that is used to translate year-end net monetary position between PCT and FCT?
4. 8) What is the difference in the exchange rate that is used to translate dividends between PCT and FCT?

9) - 12) are based on the following information.

NET purchased 80% of the 10,000 outstanding shares LNET had on Jan 1, 2019 for $355,000 cash. On that day, LNET had 10,000 preferred shares, 5% cumulative, redeemable at a price which is $1 higher than the cost, and dividends were two years in arrears. NET did not own any of those preferred shares. Both companies have Dec. 31 as the reporting day. LNET reported the followings:

Common shares: $180,000 on Jan 1, 2019

Preferred shares: $60,000 on Jan 1, 2019

Retained earnings: $80,000 on Jan 1, 2019

Net income: $70,000 for 2019

Dividends declared: $5,000 in 2019

Assume: entity theory is used.

1. 9) What is the total acquisition differential on Jan 1, 2019?
2. 
   
3. 10) What is the NCI in profit that should be reported on the consolidated income statement for year 2019?
4. 
   
5. 11) What is the NCI reported on the consolidated balance sheet as of Dec 31, 2019?

12) What is the amount contributed by LNET to NET's portion in the consolidated net income for year 2019?