part 1

part 2

QUESTION 33 On January 1, Year 1, Giant bought 80% of the shares of Son for $20 million. At the time, the fair value of the 10% noncontrolling interest was $4 million. The equity of Son on the date of acquisition was $16 million. Its common stock $1 million and retained earnings $15 million. All assets and liabilities had fair value equal to book value, except Son owned a building with a fair value $ of $30 million and a fair value of $25 million. It has 10 years of remaining life and no salvage value. During Year 1, Son reported revenues of $5 million and expenses of $3 million. It declared dividends of $300,000. Giant had net income from its own operations (ignoring its interest in Son) of $50 million As of the date of acquisition, what corysolidation entry or entries are needed? Show your work. (6 points) QUESTION 34 At the end of the year, what is the amount of income that is allocable to the controlling interest, that is, the shareholders of the parent company? (3 points)