The following information pertains to the following 2 Questions.

On January 1, 2021, Gooch Company acquires 80% of the outstanding common stock of House Inc., for a purchase price of $12,400,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $3,100,000. The book value of the Houses stockholders equity on the date of acquisition is $10,000,000 and its fair value of net assets is $11,000,000. The acquisition-date acquisition accounting premium (AAP) is allocated $600,000 to equipment with a remaining useful life of 10 years, and $250,000 to a patent with a remaining useful life of 5 years.

20. The [A] consolidating journal entry (on Goochs books) to recognize the acquisition date AAP and allocate the ownership interest in those assets to the parent and noncontrolling interests includes:

a. Equity investment, credit, $5,350,000

b. Noncontrolling interest, credit, $3,100,000

c. Houses retained earnings, debit, $2,00,000

d. Noncontrolling interest, credit, $1,070,000

21. What is the acquisition accounting premium (AAP)?

a. $5,500,000

b. $4,650,000

c. $2,400,000

d. $4,400,000