On January 1, Year 1, Papa Inc. acquired 80% of the outstanding voting shares of Sonny Inc. for total consideration of $1,200,000. On this date, Sonny reported total assets of $1,800,000 and total liabilities of $800,000. All assets and liabilities had FV s equal to carrying values except for the following: - Patent-Carrying value of $0, but the fair value is $90,000; and - Equipment-Carrying value of $200,000 but the fair value is $150,000 The patent had a remaining useful life of 10 years as of the date of acquisition. The equipment has remaining useful life of 4 years. On December 31, Year 3, Papa and Sonny reported $200,000 and $150,000, respectively, for equipment on the separate entity financial statements. What amount would be reported for equipment on the consolidated financial statements as at December 31 , Year 3 ? a. $337,500 b. $387,500 c. $337,500 d. $312,500 Which of the following is a correct statement pertaining to consolidation of a subsidiary? a. Consolidated Net Income attributable to NCl does not contain any parent's net income b. NCl will be reported as non-current liability on the consolidated balance sheet. c. Dividend declared by the controlling interest will be removed from the consolidated net income calculation. d. Realized profit/gain/loss will be required as separate adjustments in the calculation of the consolidated retained earnings