Spud Company, a 80%-owned subsidiary of Potato Corporation, reported net income of $240,000 and paid dividends totaling $90,000 during Year 3. Year 3 amortization of differences between current fair values and carrying amounts of Spud's identifiable net assets at the date of the business combination was $40,000. The noncontrolling interest in net income of Spud for Year 3 was

$30,000.

$22,000.

$48,000.

$40,000.

1. Pot Company acquired an 80% interest in Stove Company on January 1, 2011, for $270,000 cash when Stove Company had common stock of $90,000 and retained earnings of $210,000. All excess was attributable to plant assets with a 10 year life. Additional depreciation expense in 2011 was:

   $3,000.

   $3,750.

   $37,500.

   $7,500.

1. SotioCompanyistheJapanesesubsidiaryofaU.S.corporation.TheU.S.dollarhasbeendeterminedtobetheSotio'sfunctionalcurrency.Sotio'sbeginningbalanceofinventoryis60,000.Inventorypurchasesof120,000weremadeevenlythroughouttheyear.Endinginventoryconsistedon42,000ingoodspurchasedonDecember15.

   Date	Yen/U.S.Dollar
   January1	315
   Average	325
   December15	280
   December31	290

   WhatisSotio'scostofgoodssoldinU.S.dollars?

2. $414

   $476

   $409

   $424

3. PartyCompanyacquiredan80%interestinStreamerCompanyin2010.In2011and2012,Streamerreportednetincomeof$300and$360,respectively.During2011,Streamersold$60ofmerchandisetoPartyfora$25profit.Partysoldthemerchandisetooutsidersduring2012for$105.Forconsolidationpurposes,whatisthenoncontrollinginterest'sshareofStreamer's2011and2012netincome?

4. 		$60and$72.
   		$77and$55.
   		$55and$77.
   		$65and$67.

5. Pluto Company acquired an 60% interest in Saturn Company on January 1, 2011, for $270,000 cash when Saturn Company had common stock of $150,000 and retained earnings of $150,000. The excess of the implied value over the fair value of identifiable net assets was partially to plant assets with a 10 year life. Excess depreciation expense in 2011 was $20,000 on the plant assets. Saturn Company made $60,000 in 2011 and paid no dividends. Pluto Company's separate income before consolidation in 2011 was $375,000. Controlling interest in consolidated net income for 2011 is:

   		$415,000.
   		$387,000.
   		$355,000.
   		$375,000.