wealc Question 1 Large Corporation acquired all of Broad Corpor for $480,000. At that time Broad reported common stock ou s on January 1, 2018. retained earnings of $130,000. The book values of Broad's assets 0,000 and abilities approximated fair values, except for land, which had a book value of $80,000 and value of $100,000, and buildings, which had a book value of $220,000 and a fair value of $400,000. Land and buildings are the only noncurrent assets that Broad holds. Ignore taxes. Required (a) Compute the amount of goodwill at the date of acquisition. (b) Give the consolidation entry or entries required immediately following the acquisition to prepare a consolidated balance sheet. Question 2 Broad Company purchased 70 percent of Minor Company's stock approximately 20 years ago. On 1 January, 2019, Broad purchased a building from Minor for $600,000. Minor had purchased the building on 1 January, 2011, at a cost of $800,000 and used straight- line depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany sale. Ignore taxes. Financial year ends on 31 December. Required (a) What amount of depreciation expense on the building will Broad report for 2019? (b) What amount of depreciation expense would Minor have reported for 2019 if it had continued to own the building? (c) Give the consolidation entry or entries needed to eliminate the effects of the intercompany building transfer in preparing a full set of consolidated financial statements at December 31, 2019. (d) What amount of income will be assigned to the non-controlling interest in the consolidated income statement for 2019 if Minor reports net income of $280,000 for 2019