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Questions 811 are based on the following infornation Patriet Corporation acquired 80 pertent exmenhip of Seahawk Corporation on January 1.208. for $200,000. As that date, Seahawk reported common stock outstanding of $75,000 and retained. earnings of $150,000. The fair value of the nopcontrolling interest was $50,000, The differential is assigned to equipment, which had a fair value $25,000 greater than book value and a remaising economie fife of five years at the date of the business combination. Scahawk reported net income of $40,000 and paid dividends of $20,000 in 208 8. The basic consolidation entry includes a debit of: (a) NCl in NI of Seahawk Corporation of $32.000 b) NCI in NI of Seahawk Corporation of $8,000 c) NCl in NA of Seahawk Corporation of $49,000 d) NCl in NA of Seahawk Corporation of $196,000 e) Investment in Seahawk Corporation of $196,000 9. The equity-method entry on the parent's book related to the amortization of the excess value includes: a) A debit of investment in Seahawk Corporation 5,000 b) A credit of investment in Seahawk Corporation 5,000 c) A debit of investment in Seahawk Corporation 4,000 d) A credit of investment in Seahawk Corporation 4,000 e) A credit of income from Seahawk Corporation of 1,000 10. For consolidation, the excess value reclassification entry includes: a) A debit of NCI in NI of Seahawk Corporation 4,000 b) A debit of NCI in NI of Seahawk Corporation of 1,000 c) A credit of NCI in NI of Seahawk Corporation of 4,000 d) A credit of NCI in NI of Seahawk Corporation of 1,000 c) A debit of equipment of 20,000 11. For consolidation, the amortized excess value reclassification entry includes: a) A credit of depreciation expense 5,000 b) A debit of Income from Seahawk Corporation of 1,000 c) A debit of Income from Seahawk Corporation of 4,000 d) A credit of Income from Seahawk Corporation of 4,000 e) A credit of Income from Seahawk Corporation of 1,000

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