Use the following fact pattern to answer multiple choice questions 1 through 15, with sub-instructions for particular questions: On January 1, 2018, Parent Co. acquired 80% of Sub Inc. by paying $800,000. Non-controlling interest was valued at $200,000. Sub reported common stock on that date of $520,000 with retained earnings of $352,000. A building was undervalued in the company's financial records by $18,000. This building had a ten-year remaining life. Copyrights of $80,000 were not recognized and should be amortized over 20 years. Sub earned income and paid cash dividends as follows:

Net Income Dividends Paid

2018 $115,000 $64,600

2019 $144,400 $71,600

2020 $164,000 $94,000

On December 31, 2020, the Parent owed $20,800 to Sub Inc. There have been no changes in Sub's common stock account since the acquisition. To answer questions 1 through 3, prepare the allocation of the acquisition on January 1, 2018. In your presentation, but sure to show the excess fair value over cost allocated to the identifiable assets, and any resulting goodwill. In addition, for the identifiable assets, be sure to calculate the annual amortization of excess fair value over book value.

Questions 14 and 15 requires use of Exhibit 2 below for 2020: Exhibit 2: Worksheet for Balance Sheet (partial) (2020) Balance Sheet (selected) Parent Sub Co. Debit Credit NCI Consolidated Buildings (net) 304,000 470,200 Copyrights (net) 880,000 540,000 Non-controlling Interest Hint: When calculating NCI, do not forget dividends from Retained Earnings Statement. 14. Using data in Exhibit 2 above, what would be the consolidated balances for Buildings and Copyrights, respectively at the balance sheet date? A. $772,400; $1,416,000. B. $772,400; $1,496,000. C. $786,800; $1,488,000. D. $786,800; $1,416,000. 15. Using data in Exhibit 2 above, what would be the Non-controlling interest in the subsidiary at the balance sheet date? A. $253,960. B. $222,320. C. $216,440. D. $235,160.