What is the amount of consolidated goodwill attributed to the noncontrolling interest at the date of acquisition, following U.S. GAAP?

a. $0

b. $1,340

c. $1,540

d. $1,440

Use the following information to answer Questions 7 9.

A company issues new stock with a fair value of $120,000 to acquire 85% of the stock of another company. The fair value of the noncontrolling interest at the date of acquisition is $19,000, and the book value of the acquired company is $15,000. The subsidiarys net assets are reported at amounts approximating fair value at the date of acquisition, except that its plant assets are overvalued by $25,000, its reported license agreements are undervalued by $30,000, and it has previously unreported identifiable intangible assets with a fair value of $50,000.

7. What is the total reported goodwill on this acquisition, following U.S. GAAP?

a. $102,000

b. $119,000

c. $ 50,000

d. $ 69,000

8. What is the goodwill to the noncontrolling interest, following U.S. GAAP?

a. $ 7,500

b. $10,350

c. $ 8,500

d. $0

9. At what value does the noncontrolling interest appear on the date-of-acquisition consolidated balance sheet, following U.S. GAAP?

a. $18,000

b. $10,500

c. $ 2,250

d. $19,000

Use the following information to answer Questions 10 11.

On January 1, 2020, Portal Corporation acquired 90% of Squaredeal Companys voting stock for $62,000 in cash and stock. The noncontrolling interest in Squaredeal had a fair value of $5,000. The entire excess of fair value over book value was attributable to goodwill, which is not impaired in 2020. It is now December 31, 2020, and Squaredeals trial balance is as follows:

Squaredeals trial balance, December 31, 2020	Dr (Cr)
Current assets	$ 3,000
Plant assets, net	97,000
Liabilities	(59,000)
Capital stock	(12,700)
Retained earnings, beginning	(25,300)
Dividends	1,000
Sales revenue	(280,000)
Cost of sales and operating expenses	276,000
Total	$ 0

Portal uses the complete equity method to report its investment in Squaredeal on its own books.

10. On the 2020 consolidation working paper, eliminating entry (E) credits the noncontrolling interest in Squaredeal by:

1. $1,270
2. $2,530
3. $3,800
4. $3,840