3. Perth Corporation acquired a 100% interest in Sansone Company for $1,600,000 when Sansone had...
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3. Perth Corporation acquired a 100% interest in Sansone Company for $1,600,000 when Sansone had no liabilities. The book values and fair values of Sansone's assets were: Current assets Equipment Land & buildings Total assets Book Value $350,000 150,000 570,000 $1,070,000 Fair Value $400,000 200,000 590,000 $1,200,000 Immediately following the acquisition, equipment will be included on the consolidated balance sheet at: A) $150,000. B) $200,000. C) $210,000. D) $280,000. 4. The unamortized excess account is A) a contra-equity account. B) used in allocating the amounts paid for recorded balance sheet accounts that are above or below their fair values. C) used in allocating the amounts paid for each asset and liability that are above or below their book values, especially when numerous assets or liabilities are involved. D) the excess purchase cost that is attributable to goodwill. 5. In the consolidated income statement of Wattlebird Corporation and its 90% owned Forest subsidiary, the noncontrolling interest share was reported at $45,000. Assume the book value and fair value of Forest's net assets were equal at the acquisition date. What amount of net income did Forest have for the year? A) $52,941 B) $38,250 C) $450,000 D) $300,000
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