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X Co acquired 100% of Y Co outstanding capital stock for $400,000 cash. Immediately before the purchase,the balance sheets of both

corporations reported the following:

XCO Y CO

Assets 2,000,000 750,000

Liabilities 750,000 400,000

Common Stock 1,000,000 310,000

Retained Earnings 250,000 40,000

Liabilities & Stockholders Equity 2,000,000 750,000

At the date of purchase, the fair value of Y assets was $50,000 more than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase,the goodwill should amount to

Select one: a. 30,000 b. 50,000 c. 80,000 d. 0

W co. holds 80% of the common stock of C Company, an investment acquired for $680,000. Immediately following the combination, W net assets have a book value of $1,150,000 and a fair value of $1,390,000. The book value and the fair value of C net assets on the date of combination are $400,000 and $610,000, respectively. Immediately following the combination, a consolidated balance sheet is prepared

Based on the information given above, goodwill will be reported in the consolidated balance sheet in the amount of:

Select one: a. 300,000 b. 240,000 c. 150,000 d. 270,000

A 70% owned subsidiary CO, declares and pays a cash dividend.What effect does the dividend have on the retained earnings and noncontrolling interest balances in the parent companys consolidated balance sheet

Select one: a. No effect on either retained earnings or noncontrolling interest. b. No effect on retained earnings and a decrease in noncontrolling interest. c. A decrease in retained earnings and no effect on noncontrolling interest d. Decreases in both retained earnings and noncontrolling interest.

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