Q1.Identify the Components that used in determining goodwill:

Q.2 Merando Company acquires 30 percent of Pau Companys common stock for $200,000 at the beginning of the year but does not gain significant influence over Pau. During the year, Pau has net income of $40,000 and pays dividends of $30,000. prepare the journal entries:

Q.3 Beta Corporation acquired 100 percent of the voting shares of Yang Inc. by issuing 10,000 new shares of $10 par value common stock with a $40 market value. Required: 1) Which company is the parent and which is the subsidiary? 2) Define a subsidiary corporation. 3) Define a parent corporation. 4) Which entity prepares consolidated worksheet? 5) Why are elimination entries used?