Use the following to answer questions 10-18: On January 1, 2000, Ready acquired 80 percent of the outstanding common stock of Nelson Company at a cost of $30 per share. Balance sheet information for Nelson on the acquisition date is as follows: Book Value Fair Value Current Assets $ 200,000 $ 250,000 Plant and EquipmentNet 1,000,000 1,300,000 Other Assets 100,000 100,000 Total $1,300,000 $1,650,000 $ 200,000 Total Liabilities Common Stock ($10 par) Additional Paid-In Capital Retained Earnings Total $ 200,000 600,000 300,000 200,000 $1,300,000 The differences between the book values and fair values of Nelson's net assets can be attributed to inventory (FIFO costing) and equipment with a remaining life of eight years. Any remaining differential is attributable to goodwill. In each of the first two years following acquisition, Ready reported annual net of $300,000 and declared annual dividends of $60,000, while Nelson reported annual net income of $200,000 and declared annual dividends of $20,000. Ready uses the equity method to account for its investment in Nelson. 10. Based on the information given above, the amount of differential reflected in the cost of Ready's acquisition of Nelson was: A) $0. B) $280,000. C) $340,000. D) $560,000. 11. Based on the information given above, the amount that should be reported for noncontrolling interest in the consolidated balance sheet prepared immediately following the acquisition is (solve algebraically for total enterprise value): A) $0. $220,000. C $260,000. D) $290,000. E) $360,000. 12. Based on the information given above, at what amount should the following accounts of Nelson be reported in the consolidated balance sheet prepared immediately following the acquisition? Current Plant and Assets Equipment A) $200,000 $1,000,000 B) 250,000 1,300,000 200,000 1,300,000 D) 240,000 1,240,000 b 13. Based on the information given above, investment income recorded on Ready's books for the year 2000 with respect to its investment in Nelson should be: A) $160,000. B) $130,000. C) $ 90,000. D) $ 83,000