The following items have been identified for an acquired company. Which one(s) are separately capitalized by the acquiring company, per FASB ASC 805?

a. Developed technology, brand names, future cost savings

b. Brand names, prospective contracts, in-process research and development, favorable press reports

c. Skilled workforce, prospective contracts, future costing savings, favorable press reports

d. Developed technology, brands names, in-process research and development

Palm Corporation acquired all of the stock of Sequoia Company, with an acquisition cost that was $4,000,000 in excess of Sequoias $2,000,000 book value. All of Sequoia's assets and liabilities are carried at amounts approximating fair value, except that land is overvalued by $600,000. Which of the following is TRUE concerning the consolidation working paper eliminating entries at the date of acquisition?

a. Working paper eliminating entry E reduces Investment in Sequoia by $4,000,000

b. Working paper eliminating entry R increases Goodwill by $4,600,000

c. Working paper eliminating entry R increases Land by $600,000

d. Working paper eliminating entry R increases Investment in Sequoia by $4,000,000

A consolidated entity reports consolidated net income, but a noncontrolling interest in net loss. What is the reason for the discrepancy?

a. The noncontrolling interest is subtracted from consolidated income to obtain income to the controlling interest.

The subsidiary declared dividends in excess of reported income for the year. The subsidiary reported net loss for the year, while the parent reported net income for the year. There was no revaluation write-offs for the year.