Selected information from the separate and consolidated balance sheets and income statements of Power Incorporated and its subsidiary, Spin Company, as of December 31, 20X8, and for the year then ended is as follows:

	Power	Spin	Consolidated
Balance Sheet Accounts
Accounts Receivable	$ 26,000	$ 19,000	$ 39,000
Inventory	30,000	25,000	52,000
Investment in Spin Company
Patents	53,000		20,000
NCI in NA of Spin Company			14,000
Stockholders Equity	154,000	50,000	154,000
Income Statement Accounts
Revenues	$ 200,000	$ 140,000	$ 308,000
Cost of Goods Sold	150,000	110,000	231,000
Gross Profit	$ 50,000	$ 30,000	$ 77,000
Income from Spin Company	7,400
Amortization of Patents			2,000
Net Income	$ 33,000	$ 15,000	$ 40,000

Additional Information:

During 20X8, Power sold goods to Spin at the same markup that Power uses for all sales. At December 31, 20X8, Spin had not paid for all of these goods and still held 37.5 percent of them in inventory.

Power acquired its interest in Spin on January 2, 20X5, when the book values and fair values of the assets and liabilities of Spin were equal, except for patents, which had a fair value of $28,000. The fair value of the noncontrolling interest was equal to a proportionate share of fair value of Spins net assets.

1. At December 31, 20X8, what was the amount of Spins payable to Power for inter-company sales?

multiple choice

$29,000

$6,000

$32,000

$3,000

2. What is the percent of noncontrolling interest ownership of Spin?

multiple choice

25 percent

45 percent

10 percent

20 percent

3. In Powers consolidated balance sheet, what was the carrying amount of the inventory that Spin purchased from Power?

multiple choice

$3,000

$9,000

$6,000

$12,000

4. Over how many years has Power chosen to amortize patents?

multiple choice

23 years

14 years

40 years

10 years