On January 1, 2019, Pilkey Inc. purchased 75,000 voting shares out of Wilson Inc.'s 100,000 outstanding voting shares for $480,000. On that date, Wilson's common shares and retained earnings were valued at $150,000 and $325,000, respectively. Wilson's book values approximated its fair values on the acquisition date with the exception of the company's equipment, which was estimated to have a fair value that was $140,000 in excess of its recorded book value, and inventory, which was estimated to have a fair value that was $15,000 in excess of its recorded book value. The equipment was estimated to have a useful life of four years. Both companies use straight-line amortization exclusively.

On January 1, 2020, Pilkey purchased an additional 20,000 shares of Wilson Inc. on the open market for $140,000. On this date, Wilson's book values were equal to its fair values with the exception of the company's equipment, which is now thought to be undervalued by $40,000.

Wilson’s net income and dividends for 2019 were $75,000 and $8,000 respectively. Wilson’s net income and dividends for 2020 were $85,000 and $11,000 respectively.

Wilson's goodwill suffered an impairment loss of $5,000 during 2019. Pilkey Inc. uses the equity method to account for its investment in Wilson Inc.

1. By how much would the non-controlling interest amount have changed as a result of Pilkey’s second purchase of shares on January 1, 2020?
   A. A decrease of $32,600.
   B. A decrease of $130,400.
   C. A decrease of $108,400.
   D. An increase of $130,400.
2. What effect would the purchase on January 1, 2020, have on the consolidated retained earnings of Pilkey?
   A. There would be no effect
   B. There would be an increase of $9,600
   C. There would be a decrease of $140,000
   D. There would be a decrease of $9,600
3. What would be the balance in Pilkey’s investment in Wilson's account on December 31, 2020?
   A. $529,500
   B. $659,900
   C. $667,700
   D. $686,150
4. What is the amount of the acquisition differential amortization (excluding goodwill impairment) for 2020?
   A. $15,250
   B. $21,667
   C. $35,000
   D. ($4,000)
5. What would be the amount of the unamortized acquisition differential (including goodwill) at the end of 2020?
   A. Nil.
   B. $35,000.
   C. $88,333.
   D. $94,750.