Question 23 On January 1,20X8, Grey corporation acquired 90 percent of Nova company's voting stock, at underlying book valuc. The fair value of Nova's stock was equal to its books value. Greg uses the cquity method in accounting for its ownership of Now The ineme statement for Gireeorv and Nova for the year 20X8 are given below: Nova paid a dividend of $10,000 for the year 20X8 What amount will be reported by Gregory as the controlling net income in the consolidated income statement? Question 27 P acquired 100% of the shares of S on Jan 1,2018, by paying $350,000. On that date, the books value of the assets of S was $500,000 and liabilitics was $200,000. Also, on that date, the book value of common stock of S the $200,000 and retained earnings was $100,000. The book values and fair values of assets and liabilities of S were same except for land which has increased in value by S20,000 and inventories which had decreased in value by $80,000. The amount paid for goodwill by P is Question 28 Hint: this problem has some liquidating dividends S started a new business on Jan 1, 2018. P purchased 40% stock of S on Jan 1, 2018, for $300,000. The net income and dividends paid by S for 2018 and 2019 are as follow. Using the cost method, the balance in the "investment in S" account in the books of P on Dee 31, 2019, will be Question 29 Company P purchased 60% stock in company S on Jan 1,20XI for $200,000. Company S reported the following information for the next year 20X : AIso, company $ pard a dividend of $20,000 during the year 20X I Under the equity method, in the books of P, the extraordinary income account will be credited with