QUESTIONS:

1. What is the goodwill at the acquisition date?

2. What is the proportion of goodwill assigned to NCI?

3. What is the ECOBV amortization for the year and the ECOBV ending balances as of December 31, 2021?

4. What is the balance sheet NCI on December 31, 2021

5. What is the NCI share of Net Income for 2021

6. Prepare the consolidation entries

Gamma acquired 60% of Delta's shares on January 1, 2021 paying $500,000 in cash. Delta's balance sheet as of January 1, 2021 and the fair value of Delta's assets and liabilities were as follows: The useful life of the plant equipment is 5 years starting January 1, 2021. The turnover of shortterm assets and liabilities is less than one year. Additionally, during the due-diligence process, Gamma found out that Delta has unrecorded liabilities for product warranties for $100,000 that will be likely exercised over 4 years starting January 1,2021. During 2021, Delta's Net Income was $355,000 and Delta paid $50,000 in dividends. In addition, as of December 31, 2021 Gamma determined a goodwill impairment charge equal to $90,000 related to Delta's acquisition. Below are Gamma's and Delta's Balance Sheets and Income Statements for the year ended December 31, 2021: Gamma acquired 60% of Delta's shares on January 1, 2021 paying $500,000 in cash. Delta's balance sheet as of January 1, 2021 and the fair value of Delta's assets and liabilities were as follows: The useful life of the plant equipment is 5 years starting January 1, 2021. The turnover of shortterm assets and liabilities is less than one year. Additionally, during the due-diligence process, Gamma found out that Delta has unrecorded liabilities for product warranties for $100,000 that will be likely exercised over 4 years starting January 1,2021. During 2021, Delta's Net Income was $355,000 and Delta paid $50,000 in dividends. In addition, as of December 31, 2021 Gamma determined a goodwill impairment charge equal to $90,000 related to Delta's acquisition. Below are Gamma's and Delta's Balance Sheets and Income Statements for the year ended December 31, 2021