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25 Accountant A says that differential is when book value of assets is less than the sales price paid. Accountant B says that profit from selling an item to a related party is realized but from a consolidation standpoint profit is not realized until confirmed. Who is right? Skipped Multiple Choice O Accountant A is right Accountant is right Both accountants are right Accountant A says that for equity Investments where there is no significant influence, investments in common stock should be at recorded at the total cost incurred at the sale. Accountant B says that potential stockholders are more interested in the consolidated financial statements than financial statements of an individual company. Who is right? Multiple Choice Accountant A is right Accountant B is right Both accountants are right On January 1, 20X9, Pirate Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Sea-Gull Corp. $ 20,000 30,000 40,080 40,000 150,000 (50,000) Pirate Corp. $ 60,000 80,000 90,000 100,000 200,000 (80,000) 160,000 $610,000 Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Sea-Gull Corp. Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity $230,000 $110,000 95,000 200,000 285,000 $610,000 $ 30,000 40,000 40,000 120,000 $230,000 At the date of the business combination, the book values of Sea-Gull's net assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination

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