Required Informetion

$[$The following information applies to the questions displayed below.$]$

Apple Corporation acquires $80$ percent of Berry Corporation's common shares on January $1,20$X$2.$ On

January $2,202,$ Berry acquires $60$ percent of Coco Corporation's common stock. Information on company

book values on the date of purchase and operating results for $202$ is as follows:

The fair values of the noncontrolling interests of Berry and Coco at the dates of acquisition were $$60,000$ and

$$80,000,$ respectively.

Requlred:

Select the correct answer for each of the following questions.

Assume that Berry pays $$150,000,$ rather than $$120,000,$ to purchase $60$ percent of Coco's common stock, and the fair

value of the noncontrolling interest is $$100,000$ at the date of acquisition. If the differential is amortized over $10$ years, the

effect on $202$ income assigned to the controlling shareholders will be a decrease of:

Multiple Cholce

$$2,400.$

$$3,000$

$$5,000.$

$$0.$