** use the following information to answer the next 3 questions ** On January 1, 20x1, Neal Co. issued 100,000 shares of its $10 par value common stock in exchange for all of Frey, Inc.'s outstanding stock. The fair value of Neal's common stock on that date was $19 per share. The book value of subsidiary's net assets was $1,625,000 as of the time of business combination Two identifiable assets and and one liability of Frey were found to have different values from their market values on January 1, 20x1. Patent (5 years remaining life): Equipment (15 years remaining life): Long-term Liabilities (3 years to mature): Over-valued by $30,000 Under-valued by $135,000. Over-valued by $12,000. What is the amount of goodwill resulting from the business combination? ** Same information as above ** Neal used the full equity to account for this acquisition. In 20x1, both companies reported the following information Net Income Dividends Neal (Parent) Frey_(Subsidiary). $900,000 $120,000 $20,000 $10,000 What is the amount of Income from Subsidiary (Frey) reported in Neal's income statement for 20x12 Select one: a $109,000 b. $119,000. c. $113,000 d. $103,000 Same information as above ** As of December 31, 20x1, Neal and Frey also reported their long-term liabilities of $1,500,000 and $800,000, respectively. What is the amount of consolidated long-term liabilities as of December 31, 20x12 Select one: a $2,288,000. b. $2,292,000 c. $2,312,000 d. 52,300,000 What accounting method must be used if a company purchases 100% ownership of another company and both companies continue to operate after the business combination? Select one: a. Full equity method b. Partial equity method. c. Initial value method o