1. On January 1, 2020, Portal Corporation acquired 90% of Squaredeal Company's voting stock for $62,000 in cash and stock. The noncontrolling interest in Squaredeal had a fair value of $5,000. The entire excess of fair value over book value was attributable to goodwill, which is not impaired in 2020. It is now December 31, 2020, and Squaredeal's trial balance is as follows:

   Squaredeal's trial balance, December 31, 2020	Dr (Cr)
   Current assets	$ 3,000
   Plant assets, net	97,000
   Liabilities	(59,000)
   Capital stock	(12,700)
   Retained earnings, beginning	(25,300)
   Dividends	1,000
   Sales revenue	(280,000)
   Cost of sales and operating expenses	276,000
   Total	$ 0

   Portal uses the complete equity method to report its investment in Squaredeal on its own books. On the 2020 consolidation working paper, eliminating entry (E) credits the noncontrolling interest in Squaredeal by:

   	A.	$3,840
   	B.	$1,270
   	C.	$2,530
   	D.	$3,800

2. A parent acquires the voting stock of a subsidiary on January 1, 2019. Required revaluations of the subsidiary's net assets are:

   *	Previously unreported identifiable intangibles valued at $3 million, with a remaining life of 10 years, straight-line
   *	Goodwill

   It is now December 31, 2021, three years after the acquisition. The goodwill is unimpaired during this period. The parent reports its investment in the subsidiary using the cost method. The subsidiary reports the following net income, other comprehensive income, and dividends in the three years since the acquisition:

   	Net Income	Other Comprehensive Income (Loss)	Dividends
   2019	$600,000	$100	$100,000
   2020	700,000	120	100,000
   2021	750,000	(50)	150,000

   Eliminating entry (A) on the 2018 consolidation working paper includes:

   	A.	A credit to beginning AOCI of $220
   	B.	A credit to beginning retained earnings of $950,000
   	C.	A debit to Investment in Subsidiary of $1,300,000
   	D.	A credit to beginning retained earnings of $500,220

3. Power Inc. acquires all the voting stock of Signal Company for $30,000,000 in cash. At the date of acquisition, Signal's balance sheet is as follows:

   	Book Value Dr (Cr)	Fair Value Dr (Cr)
   Tangible assets	$15,000,000	$14,000,000
   Goodwill	5,000,000	7,000,000
   Liabilities	(12,000,000)	(12,000,000)
   Equity	(8,000,000)

   What amount of consolidated goodwill is recognized for this acquisition in eliminating entry (R) at the date of acquisition?

   	A.	$7,000,000
   	B.	$23,000,000
   	C.	$28,000,000
   	D.	$12,000,000